Gold Plummets Near Three Thousand On MCX As Silver Sinks

Mumbai:  The domestic bullion market witnessed a massive sell-off as gold prices plummeted by nearly ₹3,000 per 10 grams on the Multi Commodity Exchange (MCX). This unexpected correction has driven gold futures down from recent peaks of ₹1,58,500 to below the psychological benchmark of ₹1,50,000, touching an intraday low of ₹1,49,500. Concurrently, silver futures faced an even harsher bruising, sinking over 2% in a single session to hover near ₹2,33,400 per kilogram.  

This sharp downward spiral is primarily attributed to a stronger-than-expected US nonfarm payroll report, which revealed substantial job additions. The robust macroeconomic data has completely upended global market sentiment, triggering fresh fears that the US Federal Reserve will maintain a hawkish monetary policy stance and potentially raise interest rates later this year.

Furthermore, surging US Treasury yields and a strengthening US Dollar Index have increased the opportunity cost of holding non-yielding safe-haven assets, prompting investors to aggressively liquidate their bullion holdings.  In retail physical markets, prices have adjusted downward across major Indian cities, though variations persist due to localized geometric logistics, state-level duties, and varying jewelry margins.

In New Delhi, premium 24-karat gold dropped to ₹15,183 per gram, while commercial-grade 22-karat gold settled at ₹13,919 per gram. In Mumbai and Kolkata, 24-karat pure gold is trading uniformly at ₹15,168 per gram, with 22-karat retail gold priced at ₹13,904 per gram. Meanwhile, Chennai continues to maintain a slight premium, with 24-karat gold retailing at ₹15,348 per gram.  

Commodity analysts suggest that while the steep four-day correction may attract short-term value buyers ahead of the upcoming wedding season, precious metals will likely remain under technical pressure. Traders are advised to closely monitor incoming US inflation indices and fluctuating crude oil prices before building massive long positions.  (agency)