MCX Gold April Contract Declines 0.38% as International Markets Turn Bearish
New Delhi, February 16: Gold prices declined by ₹589 to ₹1.55 lakh per 10 grams in futures trade on Monday, tracking weakness in global markets and profit booking after the previous session’s gains.
On the Multi Commodity Exchange, gold for April delivery fell by ₹589, or 0.38 per cent, to ₹1,55,306 per 10 grams. The contract recorded a business turnover of 7,695 lots during the session, reflecting active participation despite the downward move.
Comex Gold Futures Fall Below USD 5,025 Per Ounce
In international markets, Comex gold futures for the April contract slipped by USD 24.31, or 0.48 per cent, to USD 5,021.99 per ounce in New York.Gold retreated to trade around USD 5,000 per ounce after rising more than 2 per cent in the previous session, following weaker than expected US Consumer Price Index inflation data.
Geopolitical Risks and Tariff Concerns Influence Market Sentiment
Market participants are closely monitoring geopolitical developments, including reports that Washington has deployed the aircraft carrier USS Gerald R Ford to the Middle East amid stalled Iran nuclear talks. Such developments are typically seen as supportive for safe haven assets like gold.Investors are also assessing the potential inflationary impact of renewed tariff threats from US President Donald Trump, along with lingering concerns over the Federal Reserve’s credibility and its future policy direction.
Chinese Demand Remains Strong Despite Price Discount
Gold is currently trading at a discount for the first time in nearly a month, even as physical demand from China remains robust. Shanghai warehouse stocks have crossed 100 tonnes, indicating sustained buying interest in the world’s largest gold consumer market.Key Data Points in Focus: PCE and FOMC Minutes
With US markets closed on account of the President’s Day holiday and Chinese markets shut for the Lunar New Year holidays, trading volumes remained relatively moderated.Investors are now awaiting fresh cues from the upcoming Personal Consumption Expenditures price index data and the minutes of the Federal Open Market Committee meeting, which could provide further direction on inflation trends and monetary policy outlook.
Gold prices remain sensitive to global macroeconomic signals, geopolitical tensions, and currency movements, with traders positioning ahead of key economic releases.
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