Gold prices fell by ₹126 to ₹71,300 per 10 grams in futures trade on Monday, September 9. This decline follows a global drop where gold rates decreased by 0.38% to $2,488.05 per ounce in New York.

The drop is linked to weak global economic indicators that have impacted investor sentiment.

Despite today’s dip, gold prices have been on an upward trajectory recently.

This shows inherent volatility in the market driven by global economic conditions and shifting investor expectations.

Colin Shah, Managing Director of Kama Jewelry, said, “Gold prices

saw a boost after the US Jobs Data release last Friday. The data revealed a lower-than-expected job growth rate of 4.2%, which has increased the likelihood of a rate cut by the US Federal Reserve. If the Fed cuts rates, it could trigger a rally in gold prices as investors seek safer assets. In India, the festive season is expected to support gold demand, mitigating any adverse impact from current higher gold prices.”

Looking ahead, Renisha Chainani, Head of Research at Augmont – Gold For All, highlighted that the market is anticipating a significant decision from the Federal Reserve on September 18.

“Currently, there’s a 70% chance of a 25 basis point rate cut by the Fed, with a 30% chance of a 50 basis point cut. This upcoming decision is critical. If gold prices continue to decline, it could present a valuable buying opportunity at the $2,470 per ounce (approximately ₹71,000 per 10 grams) support level.”

For investors, the recent dip in gold prices might be an opportune moment to buy, experts say.

With the Federal Reserve’s decision on rates and strong domestic demand in India, driven by the festive season, gold prices could rebound.

Monitoring global economic indicators and central bank decisions will be crucial for making informed investment choices.