Gold prices on the Multi Commodity Exchange (MCX) dropped over 1% on Monday after hitting a record high above ₹1,02,000 per 10 grams, reflecting weakness in global bullion markets. MCX gold futures slipped ₹1,295 or 1.27% to ₹1,00,503 per 10 grams, while silver futures fell 1.59% to ₹1,13,047 per kg.
The recent gold rally was driven by a falling rupee and global uncertainties, but momentum seems to be slowing. Optimism around a possible resolution to the Russia–Ukraine conflict, following the announcement of a meeting between U.S. President Trump and Russian President Putin on August 15, has eased geopolitical tensions.
Ajay Kedia of Kedia Advisory highlighted that the rally’s key drivers are fading, and technical charts indicate gold is overbought. He expects MCX gold to correct to ₹96,500–₹97,600, with resistance near ₹1,03,500. Jigar Trivedi of Reliance Securities echoed similar views, adding that record-high prices could limit jewelry demand. Analysts advise partial profit booking while keeping an eye on global cues and market signals.
