On Thursday morning, gold prices in India saw a slight drop as MCX futures declined modestly, triggered by profit-booking after a sharp rally, a stronger dollar, and weak spot market demand.
MCX gold February contracts were down by around 0.13%, trading at ₹1,30,288 per 10 grams. Meanwhile, silver March contracts saw a drop of about 0.08%, settling near ₹1,82,200 per kilogram.
What’s behind the dip
Analysts say the pullback reflects investors booking gains after a sustained surge in precious-metals markets through recent weeks. A stronger U.S. dollar – which makes dollar-up(dollar-denominated) gold more expensive for holders of other currencies – has further dampened(lower) demand.
Moreover, subdued demand in India’s physical market added to the downward pressure. With fewer buyers active in the spot segment, futures contracts – which typically reflect both international trends and local sentiment – adjusted lower accordingly.
Broader context and recent gains
Despite today’s dip, gold has had a stellar run in 2025. According to recent data, prices have surged roughly 66% year-to-date, while silver has recorded an even sharper increase.
That surge was fueled by a blend of international and local drivers – hopes for overseas central-bank rate cuts, inflation worries, currency swings, geopolitical tensions, and strong buying from both retail investors and institutions.
Markets await policy signals (from RBI)
Adding to the uncertainty, markets are now bracing (preparing) for the upcoming policy decision from Reserve Bank of India (RBI).Traders anticipate that the RBI Monetary Policy Committee meeting’s outcome – particularly any shifts in interest rates or inflation guidance – could shape the direction of gold and other precious metals in India.
A cautious or hawkish RBI tone-particularly if it hints at tighter policy or higher rates-could bolster(support) the rupee or dampen demand for non-yielding assets like gold, thereby adding further downward pressure on prices.On the other hand, a dovish stance or expectations of global rate cuts could reignite interest.
What investors should watch
In the short term, gold investors should watch three key factors: the strength of the global dollar, domestic physical market demand (particularly jewellery and investment buying), and the RBI’s policy signals.
Given the recent rally and ongoing volatility, some analysts view current price dips as a potential buying opportunity – especially for those with a medium-term horizon – while others caution about short-term headwinds.
In brief: today’s decline may prove short-lived, but with global and domestic headwinds still active, gold’s trajectory will likely stay volatile in the days ahead.
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