MUMBAI — Gold prices fell on Monday, extending last week’s losses, as optimism over a potential U.S.-China trade deal reduced investor demand for safe-haven assets and prompted profit-taking after a steep rally.
On the Multi Commodity Exchange (MCX), gold futures opened 0.77 percent lower at Rs 1,22,500 per 10 grams, compared with the previous close of Rs 1,23,451. During early trading, prices slipped further by Rs 1,088, or 0.88 percent, to Rs 1,22,363 per 10 grams.
Silver also declined sharply, with MCX contracts opening 3.09 percent lower at Rs 1,42,910 per kilogram from the previous close of Rs 1,47,470. By mid-session, silver futures were trading at Rs 1,46,340 per kilogram, down Rs 1,130 or 0.77 percent.
In the global market, spot gold dropped 0.7 percent to $4,083.92 an ounce in Singapore, after touching an intraday low near $4,065. The metal fell 3.3 percent last week, breaking a two-month winning streak that had pushed prices to record highs above $4,380 an ounce.
The decline followed comments from U.S. and Chinese officials suggesting that a long-awaited trade agreement was nearing completion. Hopes for progress intensified ahead of President Donald Trump’s upcoming diplomatic visit to the region, which analysts said could ease geopolitical tensions that have driven gold prices higher in recent months.
“Gold prices continue to decline as safe-haven demand weakens amid optimism over a potential U.S.–China trade deal and a stronger U.S. dollar,” analysts said. “This week will be crucial for the bullion market, with key events including meetings between President Trump and Chinese President Xi Jinping, a Federal Reserve announcement, and major U.S. tech earnings reports.”
Despite the pullback, gold remains up more than 55 percent this year, supported by steady central-bank buying and investor hedging against rising deficits and currency weakness. Analysts said the current correction reflects profit booking after gold’s rapid gains since August, rather than a structural shift in sentiment. (Source: IANS)
