Gold and silver prices declined on Monday, with weakness visible in both domestic futures and retail markets as investors booked profits after the recent sharp rally in precious metals, even as demand sentiment stayed firm after the Akshaya Tritiya buying season.
On the Multi Commodity Exchange (MCX), gold futures for the May contract were trading at Rs 1,51,410 per 10 grams at around 9:20 am, down Rs 1,766 or 1.15%. The contract touched an intraday high of Rs 1,51,982 and a low of Rs 1,51,300 in early trade.
Silver May futures were quoted at Rs 2,52,304 per kg at the same time, down Rs 4,838, or nearly Rs 5,000, a fall of 1.88%. The contract moved between an intraday high of Rs 2,54,089 and low of Rs 2,52,304.
In the retail market, gold rate remained elevated despite the correction in futures prices. Gold prices were quoted at around Rs 1,55,790 per 10 grams for 24-carat purity, while silver rate today stood near Rs 2,74,900 per kg in major cities.
Today’s gold rate for 22-carat jewellery was around Rs 1,42,790 per 10 grams, while gold rate today Mumbai remained broadly in line with other metros.
The decline is largely being attributed to profit-booking after the recent surge that pushed prices up. Traders often lock in gains after a sharp rally, leading to temporary corrections in the next few sessions.
A stronger US dollar also weighed on sentiment, as commodities priced in dollars become more expensive for overseas buyers.
Markets are also reassessing expectations around future interest rate cuts by major central banks, which can reduce the appeal of non-yielding assets such as gold.
The pullback comes just after Akshaya Tritiya, . While jewellers reported healthy footfall this year, elevated prices led many consumers to prefer coins, bars and lightweight jewellery instead of heavy purchases.
News agency Reuters reported that demand was subdued in several regions because of record-high rates.
Analysts said gold and silver may remain volatile in the near term as investors continue to monitor global economic cues, bond yields, currency movement and geopolitical developments.
Jewellers added that wedding-season demand remains steady, though higher prices are encouraging some buyers to stagger purchases.