Gold prices in India edged lower on Monday, retreating from last week’s rally that saw the precious metal touch record highs amid geopolitical tensions and strong global demand. The slight dip comes as investors reassess risk appetite following signs of cooling inflation in the U.S. and shifting expectations around interest rate cuts.
In the domestic market, 24-carat gold fell to ₹71,500 per 10 grams, down from the recent peak of ₹72,000. Analysts say the pullback reflects short-term profit booking after a sharp climb driven by safe-haven buying and robust central bank demand. Despite Monday’s decline, gold remains up nearly 10% year-to-date in India.
The retreat mirrors movements in global markets, where spot gold eased to around $2,340 per ounce after nearing all-time highs last week. While some traders are locking in gains, others are watching for the next signal from the U.S. Federal Reserve, which is expected to hold rates steady amid sticky core inflation.
The weakening of the U.S. dollar and ongoing geopolitical risks, including tensions in the Middle East and uncertainty in Eastern Europe, have continued to support bullish sentiment. However, any signs of economic resilience in the U.S. or delayed rate cuts could temporarily cap further gains in bullion.
Traders expect volatility in the short term but remain optimistic about the metal’s long-term trajectory. “Gold remains fundamentally supported, especially as global central banks diversify reserves and investors hedge against macro uncertainty,” said a senior commodities analyst at Kotak Securities.
Despite the dip, demand for physical gold in India remains healthy, particularly ahead of the upcoming wedding season and festivals. Retail buyers are expected to step in at lower price levels, offering support and potentially setting the stage for the next leg up.
