New Delhi (National Times): The gold market saw a notable downturn on Thursday, falling to levels not seen in over five weeks. The pullback reflects a broader trend away from safe-haven assets as geopolitical tensions cool and investor focus pivots to risk-on strategies.
Spot gold fell by nearly 0.8%, trading at $3,153.09 per ounce, while futures in the U.S. slipped 1% to $3,156.90. The price action confirms what many traders feared—a decisive breach below the psychological $3,200 level, which could open the door to further downside.
“Once gold dropped below $3,200, it invalidated the near-term bullish setup,” noted a commodity analyst from Singapore. “Unless new catalysts emerge, we could see a drift toward $3,050 or even $3,000 per ounce.”
The sentiment echoed across Indian markets. Gold rates, as reported by GoodReturns, saw 24K gold fall to Rs 93,930 per 10 grams, while 22K and 18K gold were priced at Rs 86,100 and Rs 70,450, respectively.
Domestic markets may see support in the Rs 90,780 to Rs 91,350 range, with a ceiling likely around Rs 92,690, according to chart-based projections.
The shift in sentiment comes ahead of critical U.S. economic data, which could influence the Federal Reserve’s stance on interest rates. Since gold does not yield returns, its appeal tends to diminish in higher-rate environments.
Despite the near-term weakness, several analysts argue that gold’s long-term fundamentals remain intact. If prices find a foothold near $3,100, or the Rs 90,000 level in India, it may signal a good entry zone for strategic buyers.
“The macroeconomic picture is still fluid,” said a Delhi-based financial advisor. “This correction is technical in nature and may offer a good setup for long-term accumulation.”
Investors are advised to monitor inflation data, Fed commentary, and dollar strength before making new allocations to gold.
