Gold Futures Fall for Fourth Straight Session as Traders Book Profits

Gold futures on the Multi Commodity Exchange extended their losing streak to a fourth straight session on Saturday, with the October contract shedding around Rs 856, or 0.54 percent, to trade near Rs 1,58,140 per 10 grams. The December contract also slipped, falling roughly Rs 942, or 0.59 percent, to around Rs 1,59,450 per 10 grams.

Retail gold prices across major Indian cities mirrored the futures weakness. Twenty-four-carat gold was quoted around Rs 1.58 lakh per 10 grams in cities including Chennai, Mumbai, Kolkata, Bengaluru and Hyderabad, while 22-carat gold hovered near Rs 1.45 lakh per 10 grams in most of the same markets. Silver held around Rs 2.55 lakh per kilogram in several cities, with Chennai, Hyderabad and Kerala trading at a premium near Rs 2.65 lakh per kilogram.

What is driving the fall

Market participants attributed the slide primarily to profit-booking in the domestic market following stronger-than-expected US Personal Consumption Expenditures inflation data for July, which raised questions over the pace of future rate cuts from the US Federal Reserve. Analysts noted that after a multi-session rally that pushed gold to record highs earlier in the month, traders were locking in gains ahead of further macro data releases.

Comex gold futures in New York also came under pressure, with the December contract declining by roughly $28, or close to 1 percent, as international prices tracked the same profit-taking dynamic seen in Indian markets. However, analysts pointed out that lingering concerns over US fiscal finances continued to offer some support to the metal, which limited the extent of the pullback both domestically and internationally.

The bigger picture

Gold has had an eventful year in Indian markets, repeatedly touching fresh record highs through much of August on the back of a weaker dollar, geopolitical uncertainty tied to tensions in West Asia, and steady safe-haven demand from both retail buyers and central banks. The current four-session slide marks a pause in that broader uptrend rather than a reversal, according to market commentary, with several analysts still framing dips as buying opportunities given the metal's strong year-to-date performance.

For Indian households, the pullback offers some relief heading into the festive and wedding season, when jewellery demand typically picks up. Even after the recent decline, gold prices remain sharply higher than year-ago levels, meaning the cost of gold jewellery and investment purchases continues to weigh on household budgets even as the metal cools off from its most recent peaks.

Traders will be watching upcoming US economic data and further signals from Federal Reserve officials for direction on whether the current pullback extends into next week or whether gold resumes its climb toward fresh highs.

This article is an original editorial summary based on publicly reported information. It has been independently written for publication and does not reproduce content from any single source.