What is the story about?
Gold prices fell below ₹5,000 per ounce on Friday (January 30), as investors reacted to speculation that the upcoming Federal Reserve chair could adopt a more hawkish monetary policy stance. Despite the decline, gold remains on track for its strongest monthly gain since 1999, supported by safe-haven demand amid ongoing economic and geopolitical uncertainties.
On the Multi Commodity Exchange of India (MCX), gold for April delivery traded lower after hitting record highs of around ₹1.83 lakh per 10 grams earlier this week. Analysts said the domestic market correction followed global trends, with profit-taking intensifying after the yellow metal surged in recent sessions.
“Gold and silver prices dropped as a rebound in the U.S. dollar triggered aggressive profit-taking,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.
He noted that domestic gold prices fell more sharply than international benchmarks, raising price parity concerns, while the dollar/rupee pair marked record highs.
Globally, Comex gold futures for April delivery declined $118.06, or 2.2%, to $5,236.74 per ounce in the Asian trading session. Analysts said investors remain cautious ahead of key US economic data, including the Producer Price Index (PPI), which could influence future monetary policy decisions.
The World Gold Council (WGC) has highlighted that central bank purchases moderated in Q4 2025, although strong investor inflows helped offset the slowdown. It also warned that India’s gold imports may decline this year, as record prices weigh on jewellery demand in the country, the world’s second-largest consumer.
Despite the recent correction, experts said gold continues to benefit from structural factors such as global economic uncertainty, geopolitical tensions, and safe-haven demand, keeping the metal attractive for long-term investors.
On the Multi Commodity Exchange of India (MCX), gold for April delivery traded lower after hitting record highs of around ₹1.83 lakh per 10 grams earlier this week. Analysts said the domestic market correction followed global trends, with profit-taking intensifying after the yellow metal surged in recent sessions.
“Gold and silver prices dropped as a rebound in the U.S. dollar triggered aggressive profit-taking,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.
He noted that domestic gold prices fell more sharply than international benchmarks, raising price parity concerns, while the dollar/rupee pair marked record highs.
Globally, Comex gold futures for April delivery declined $118.06, or 2.2%, to $5,236.74 per ounce in the Asian trading session. Analysts said investors remain cautious ahead of key US economic data, including the Producer Price Index (PPI), which could influence future monetary policy decisions.
The World Gold Council (WGC) has highlighted that central bank purchases moderated in Q4 2025, although strong investor inflows helped offset the slowdown. It also warned that India’s gold imports may decline this year, as record prices weigh on jewellery demand in the country, the world’s second-largest consumer.
Despite the recent correction, experts said gold continues to benefit from structural factors such as global economic uncertainty, geopolitical tensions, and safe-haven demand, keeping the metal attractive for long-term investors.
