Precious metals experienced heavy selling pressure during early trade on Monday morning across major commodity exchanges. Gold futures dropped by 1.31%, while silver futures slipped 0.76% amid a broader market downturn. Investors and traders closely monitored the substantial downward correction as safe-haven assets faced renewed downward momentum.
Major City-Wise Price Revisions
In Chennai, the price for 100 grams of 24-carat gold settled at Rs. 15,67,700 following a significant reduction of Rs. 14,700. Similarly, 22-carat gold in Chennai decreased by Rs. 13,500, bringing its total cost to Rs. 14,37,000. Regional buyers in Hyderabad and surrounding markets observed identical downward adjustments across various purity brackets.
Multi Commodity Exchange Performance
Trading on the Multi Commodity Exchange reflected persistent selling pressure on Monday morning for both bullion assets. The MCX Gold October 5th futures contract declined by Rs. 1,854 or 1.19%, trading at Rs. 1,54,427 per 10 grams. Concurrently, the MCX Silver September 4th futures contract fell by Rs. 1,304 or 0.55%, reaching Rs. 2,53,153 per kg.
Global Cues and Federal Reserve Remarks
Spot gold tumbled sharply following hawkish comments delivered by Fed Chair Kevin Warsh during his Jackson Hole address. According to Trading Economics, spot gold was trading down by 0.46% at $432.49 per ounce. Kedia Advisory's latest bullion report indicated a projected intraday trading range of 153300 to 161850 for gold, suggesting further cautious movement.
Domestic Demand and US Economic Data
Analysts noted that bullion prices retreated as market participants increased bets on potential interest rate hikes driven by inflation concerns. Furthermore, revised US employment data revealed that the economy added 79,000 fewer jobs during the 12 months leading up to March 2026. Within domestic markets in India, gold discounts widened to their deepest level in three months as retail demand weakened notably.
