Gold futures on MCX slipped around 0.8% to ₹1,54,700 per 10 grams, tracking a mild correction in global prices after last week’s strong rally.
In the international market, spot gold eased about 0.4% to near $5,020 per ounce after gaining over 2% in the previous session. The earlier surge was driven by softer-than-expected US inflation data, which reinforced expectations that the Federal Reserve could begin cutting interest rates later this year.
However, after the sharp move higher, some profit booking has set in. The US dollar index edged higher on Monday, making dollar-denominated gold more expensive for holders of other currencies and weighing on prices. A firmer dollar typically exerts downward pressure on bullion.
Markets are currently pricing in multiple rate cuts this year, with the first potentially coming around June or July. Investors are now awaiting further clarity from upcoming Federal Reserve minutes and the core PCE inflation report, the Fed’s preferred gauge.
With US and Chinese markets partially shut due to holidays and global participation thinner, gold is seeing a technical pullback on MCX, in line with global cues.