Gold and Silver Prices Slip as Inflation Cools: Investors Book Profits in Market Correction
Bullion prices witnessed a mild correction in early trading on August 14 after investors booked profits following a softer-than-expected US inflation outcome. This profit-taking movement saw the market consolidate, suggesting a period of cautious assessment ahead.The COMEX gold futures traded down by 1.01 percent, reaching $4,375.60 per ounce during the morning session. Simultaneously, silver experienced a decline of 1.34 percent, settling at $64.120 per ounce. These movements highlight the short-term sensitivity of precious metals to global economic data.
Domestic Gold and Silver Market Movements
The performance in domestic futures markets showed slight weakness. The MCX domestic gold futures for the October contract closed the session on Thursday (August 13) at Rs 1,53,373 per 10 grams, marking a decrease of 0.06 percent. Meanwhile, the spot gold price concluded at Rs 1,52,368 per 10 grams.Global Benchmarks and Market Sentiment
The global markets also reflected this trend. The LBMA gold price was recorded at $4,373.00 per ounce in the afternoon fixing on August 13. The parallel movement across international and domestic benchmarks suggests a broadly cautious sentiment among institutional traders.Expert View: Inflation Drives Profit Booking
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, attributed the shift to the US Consumer Price Index (CPI) data. With the US CPI recording 3.4 percent, analysts noted that this result was broadly in line with expectations. This outcome led to profit booking as a softer inflation reading had already been largely incorporated into bullion prices during previous rallies.Future Market Drivers and Technical Forecasts
Looking ahead, market participants will be focusing on several key variables for fresh directional triggers. These include the trajectory of the US dollar, movements in crude oil prices, and expectations regarding Federal Reserve rate changes. This focus indicates that commodities are now highly correlated with macroeconomic policy shifts.Analysts maintain a specific technical outlook for gold. They estimate the metal to remain within the crucial support zone ranging from Rs 1,52,000 to Rs 1,52,500. Conversely, resistance is set in the immediate range of Rs 1,55,500 to Rs 1,56,000, defining the key fight areas for traders.
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