Gold prices retreated after a five‑day rally, with MCX gold down ₹1,160 per 10g and silver falling ₹5,750 per kg. Easing safe‑haven demand followed lower‑than‑expected US inflation and stronger Fed rate‑cut bets, prompting risk appetite to return. The pullback comes amid shifting macro cues and profit‑taking in precious metals.
Gold prices paused on Thursday as investors rotated back into risk assets, cooling the safe‑haven bid that lifted bullion in recent sessions. On MCX, February gold futures fell by ₹1,160 per 10g, while silver dropped ₹5,750 per kg, reflecting softer sentiment after the latest US inflation print undershot expectations.
Lower inflation reinforced expectations of future Fed easing, typically a medium‑term tailwind for gold, but near‑term profit‑taking and improved risk appetite pressured prices. The move follows a five‑day rally, signaling a tactical reset rather than a structural trend break, with traders watching upcoming macro data and central bank commentary.
City-wise retail prices also mirrored the downtrend this week, as domestic markets tracked global cues and futures moves, suggesting continued sensitivity to external policy signals and dollar dynamics.
Major takeaways
Price action: MCX gold -₹1,160/10g; silver -₹5,750/kg after a five‑day rally.
Macro trigger: Softer US inflation eased safe‑haven demand; rate‑cut bets firmed.
Market tone: Risk appetite returned; near‑term profit‑taking in precious metals.
Domestic trend: Retail prices across key cities reflected the futures-led decline.
Watchlist: Upcoming macro prints, USD moves, and Fed guidance to steer momentum.
Conclusion
The pullback in gold and silver looks like a sentiment reset driven by macro surprises. With rate expectations in flux, short‑term volatility may persist, but medium‑term dynamics still hinge on inflation paths, currency strength, and central‑bank signals.
Sources: Livemint, Financial ExpressThe Financial Express.