Gold prices ease in domestic futures trade
Gold prices declined in the domestic futures market on Wednesday, January 7, as traders booked profits amid a rise in the US dollar. The pullback came after a strong rally in the yellow metal, even as underlying demand remained supported by global uncertainties and expectations of interest rate cuts in the United States.On the Multi Commodity Exchange, February gold futures were trading 0.17 percent lower at ₹1,38,850 per 10 grams around 9:10 am. Silver prices, however, showed mild strength, with March futures rising 0.19 percent to ₹2,59,310 per kg during the same period.
Global cues weigh on sentiment
Internationally, gold prices also edged lower as a stronger dollar prompted profit booking. The dollar index hovered near a two week high, which made dollar denominated bullion relatively costlier for non US buyers, putting pressure on prices.Despite the near term softness, gold continued to find support from geopolitical developments and expectations of policy easing by the US Federal Reserve. Ongoing geopolitical tensions, including the situation involving the United States and Venezuela, have kept safe haven demand intact.
Sharp gains in 2025 prompt profit booking
Investors are locking in gains after a sharp rally in precious metals over the past year. In the domestic spot market, gold has surged by ₹56,727 per 10 grams, marking a rise of about 75 percent in 2025 so far. Silver has seen an even steeper move, jumping by ₹1,43,601 per kg, translating into gains of around 167 percent during the same period.These strong gains have encouraged some market participants to pare positions, leading to intermittent corrections in futures prices.
Market participants remain watchful
While short term movements remain influenced by currency trends and profit booking, market participants continue to track geopolitical developments and expectations around future rate cuts for cues on the next directional move in gold and silver prices.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.