Gold prices experienced a decline in early trading on Monday, October 27, as investors opted for profit booking following a robust global rally and increased volatility in recent sessions. On MCX, gold futures for December delivery decreased by Rs 1,142 or 0.92%, trading at Rs 1,22,309 per 10 grams. The movement occurred in anticipation of the upcoming US Federal Reserve policy meeting later this week, as traders chose to reduce gains at heightened levels. In the international market, gold prices experienced a decline on Monday, influenced by a stronger U.S. dollar and indications of easing tensions in U.S.-China trade relations, which impacted the demand for the safe-haven metal.
Market participants are closely monitoring upcoming central bank meetings this week for indications regarding monetary policy adjustments. Spot gold declined by 0.7% to $4,082.77 per ounce, whereas U.S. gold futures for December delivery decreased by 1% to $4,095.80. The dollar appreciated to a level not seen in over two weeks against the yen, resulting in an increase in gold prices for those holding alternative currencies. In other precious metals, spot silver experienced a decline of 0.3% to $48.42 per ounce, while platinum saw a slight increase of 0.1% to $1,607.24, and palladium recorded a decrease of 0.2% to $1,426.06.
The price movement was influenced by increased geopolitical tensions, particularly the sanctions enacted by the U.S. against Russian oil companies Lukoil and Rosneft in relation to the conflict in Ukraine. Furthermore, market sentiment was shaped by reports indicating that U.S. President Donald Trump is scheduled to engage with Chinese President Xi Jinping next week in Asia, in the context of rising trade tensions between the two nations. The White House indicated that the meeting comes in the wake of a series of retaliatory actions taken by both parties in recent weeks.
Focus has shifted to the forthcoming US Federal Reserve meeting, with market participants predominantly anticipating a 25-basis-point reduction in interest rates. “Every decline in gold price presents an opportunity for buyers to acquire and appreciate it. Wedding buyers with upcoming wedding dates can consider utilizing the dip to buy,” states Suvankar Sen.