Business
Weak Spot Market Demand Weighs on Gold Contracts
Gold prices fell in futures trade on Friday as subdued demand in the physical market weighed on investor sentiment, leading to a decline in bullion contracts on the Multi Commodity Exchange (MCX).
Gold prices witnessed a decline in futures trading on Friday, reflecting weaker demand in the spot market.
On the Multi Commodity Exchange, gold contracts for June delivery fell by Rs 259, or 0.17 per cent, to trade at Rs 1,56,666 per 10 grams.
The decline occurred amid a business turnover of 469 lots, indicating active participation by traders in the bullion segment.
Market analysts attributed the fall primarily to subdued physical demand for gold in domestic markets. Lower spot demand often influences futures prices as traders adjust their positions based on prevailing market conditions and expected consumption trends.
The correction in gold prices also comes amid improving global risk sentiment and fluctuations in international bullion markets, which continue to influence domestic commodity trading.
Gold Futures Snapshot
| Particulars | Value |
|---|---|
| Contract | Gold June Futures |
| Exchange | MCX |
| Current Price | ₹1,56,666 per 10 grams |
| Change | ▼ ₹259 |
| Percentage Change | ▼ 0.17% |
| Turnover | 469 Lots |
Despite the decline, analysts note that gold remains sensitive to global economic developments, interest rate expectations, geopolitical tensions, and currency movements. Investors are expected to closely monitor international market cues for further direction in bullion prices.
