/images/ppid_59c68470-image-178064503530178447.webp)
/images/ppid_59c68470-image-178045510807978161.webp)
/images/ppid_59c68470-image-17803850764672571.webp)
What is the story about?
Gold and silver prices declined sharply in futures trade on Friday (June 5) as investors turned cautious ahead of key US jobs data and amid easing geopolitical concerns.
On the Multi Commodity Exchange (MCX), gold contracts for August delivery fell ₹1,536, or 0.96%, to ₹1.58 lakh per 10 grams. Silver contracts for July delivery dropped ₹5,811, or 2.19%, to ₹2.58 lakh per kg.
Analysts attributed the weakness to softer global cues and profit-booking after the recent rally in precious metals.
In international markets, gold futures were trading 0.58% lower at $4,449.01 per ounce, while silver declined 2.01% to $72.39 per ounce.
The decline comes even as gold had found support earlier this week from a weaker US dollar and lower crude oil prices.
According to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, easing geopolitical tensions in the West Asia, particularly renewed ceasefire efforts involving Israel and Lebanon and signs of continued dialogue between the US and Iran, helped cool energy prices and inflation concerns.
"Market focus now shifts to the closely watched US Non-Farm Payrolls report, which is expected to provide important clues on the Federal Reserve's interest rate outlook and the near-term direction of bullion prices," Modi said.
Meanwhile, investor interest in gold-backed investment products remains elevated despite the recent correction in prices.
HDFC Mutual Fund recently imposed temporary restrictions on lump-sum investments into its Gold ETF and Gold ETF Fund of Fund schemes, citing capacity-related considerations.
Commenting on the move, Feroze Azeez, Joint CEO of Anand Rathi Wealth, said the decision reflects the need for caution amid a sharp surge in gold prices and inflows into gold investment products.
He noted that HDFC Gold ETF Fund of Fund delivered about 57% returns over the past year, while its assets under management rose to nearly ₹11,464 crore in April 2026 from around ₹3,870 crore a year earlier, highlighting strong investor appetite for the asset class.
Azeez said investors should avoid fresh lump-sum allocations to gold at current levels and consider reviewing existing holdings, saying that excessive financialisation of gold could add to import demand and pressure India's external balances.
India imported more than $70 billion worth of gold in FY26, with precious metals accounting for nearly 14% of the country's total imports, according to Anand Rathi Wealth.
-With PTI inputs
On the Multi Commodity Exchange (MCX), gold contracts for August delivery fell ₹1,536, or 0.96%, to ₹1.58 lakh per 10 grams. Silver contracts for July delivery dropped ₹5,811, or 2.19%, to ₹2.58 lakh per kg.
Analysts attributed the weakness to softer global cues and profit-booking after the recent rally in precious metals.
In international markets, gold futures were trading 0.58% lower at $4,449.01 per ounce, while silver declined 2.01% to $72.39 per ounce.
The decline comes even as gold had found support earlier this week from a weaker US dollar and lower crude oil prices.
According to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, easing geopolitical tensions in the West Asia, particularly renewed ceasefire efforts involving Israel and Lebanon and signs of continued dialogue between the US and Iran, helped cool energy prices and inflation concerns.
"Market focus now shifts to the closely watched US Non-Farm Payrolls report, which is expected to provide important clues on the Federal Reserve's interest rate outlook and the near-term direction of bullion prices," Modi said.
Meanwhile, investor interest in gold-backed investment products remains elevated despite the recent correction in prices.
HDFC Mutual Fund recently imposed temporary restrictions on lump-sum investments into its Gold ETF and Gold ETF Fund of Fund schemes, citing capacity-related considerations.
Commenting on the move, Feroze Azeez, Joint CEO of Anand Rathi Wealth, said the decision reflects the need for caution amid a sharp surge in gold prices and inflows into gold investment products.
He noted that HDFC Gold ETF Fund of Fund delivered about 57% returns over the past year, while its assets under management rose to nearly ₹11,464 crore in April 2026 from around ₹3,870 crore a year earlier, highlighting strong investor appetite for the asset class.
Azeez said investors should avoid fresh lump-sum allocations to gold at current levels and consider reviewing existing holdings, saying that excessive financialisation of gold could add to import demand and pressure India's external balances.
India imported more than $70 billion worth of gold in FY26, with precious metals accounting for nearly 14% of the country's total imports, according to Anand Rathi Wealth.
-With PTI inputs
/images/ppid_59c68470-image-178062503688799327.webp)
/images/ppid_59c68470-image-178059253892777289.webp)
/images/ppid_59c68470-image-178053757377541293.webp)
/images/ppid_59c68470-image-178056255334621119.webp)
/images/ppid_59c68470-image-178062759764627640.webp)
/images/ppid_59c68470-image-178062258233945223.webp)
/images/ppid_59c68470-image-17805400746778287.webp)
/images/ppid_59c68470-image-178057263734370325.webp)