Gold prices slipped in early Tuesday trade (Feb 17), tracking weakness in global bullion markets.
On MCX, gold futures were trading at Rs 1,53,522 per 10 grams, down Rs 1,238 or 0.80% as of 09:08 am.
Why gold is declining
The fall comes as global gold prices eased after a recent rebound, with investors turning cautious ahead of key US economic signals.
Key factors weighing on gold:
- Subdued liquidity in Asian markets, with holidays in China and Hong Kong keeping participation thin.
- Ongoing volatility after January’s sharp rally and correction in precious metals.
- Position adjustments ahead of crucial US data.
Gold had rebounded last week after softer-than-expected US inflation data strengthened expectations of potential rate cuts later this year. However, Tuesday’s decline reflects profit-booking and cautious positioning.
Focus on Fed minutes and inflation data
Market participants are closely watching:
- US Federal Reserve meeting minutes
- Core PCE price index data
Stronger US labour market data earlier suggested the Fed may keep rates elevated for longer, which typically pressures non-yielding assets like gold.
For now, gold remains under mild pressure as traders await clearer signals on the US monetary policy path.