New Delhi, February 16 Gold prices fell by Rs 589 to Rs 1.55 lakh per 10 grams in the futures trade on Monday due to a bearish trend in the international markets.
On the Multi Commodity Exchange (MCX), the yellow metal for April delivery declined by Rs 589, or 0.38 per cent, to Rs 1,55,306 per 10 grams in a business turnover of 7,695 lots.
In the global markets, Comex gold futures for the April contract slipped by USD 24.31, or 0.48 per cent, to USD 5,021.99 per ounce in New York.
"Gold slipped to trade around USD 5,000 per ounce after rising more than 2 per cent in the previous session on weaker-than-expected US Consumer Price Index (CPI) inflation data," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
Manav Modi, Analyst, Commodities at Motilal Oswal Financial Services Ltd, said that geopolitical risks remain elevated, following reports that Washington has deployed the aircraft carrier USS Gerald R Ford to the Middle East amid stalled Iran nuclear talks, lending safe-haven support to the precious metal.
He added that markets are also weighing the potential inflationary impact of renewed tariff threats from US President Donald Trump, alongside lingering questions over the Federal Reserve's credibility and future policy path.
"Gold is trading at a discount for the first time in nearly a month even as Chinese demand remains robust, with Shanghai warehouse stocks crossing 100 tonnes," Modi said, adding that this underscores firm physical buying interest.
He noted that US markets remained closed on account of President's Day holiday, while Chinese markets shut for a week for the Lunar New Year holidays.
"Investors will now look for fresh guidance from the upcoming Personal Consumption Expenditures (PCE) price index numbers and minutes from the Federal Open Market Committee (FOMC) meeting," Modi added.
