Gold futures experienced a significant decline on Wednesday, dropping ₹561 to ₹1,52,530 per 10 grams amid weak spot demand and global market conditions. According to The Hindu BusinessLine, August delivery contracts on the Multi Commodity Exchange traded lower by ₹561, or 0.37 per cent, with a business turnover of 613 lots. The futures decline reflects broader market weakness, with analysts attributing the fall to weak global cues affecting precious metal prices.
The futures decline follows Tuesday's retail market weakness, where 24 carat gold fell by ₹160 per 10 gm to ₹1,51,370 and 22 carat gold dropped by ₹15 to ₹1,38,750 per 10 gm. As reported by Goodreturns.in, 18 carat gold declined by ₹12 to ₹1,13,530 per 10 gm, with the price movements reflecting profit booking after sharp gains over the past 2-3 days. Major jewelry brands maintained consistent pricing, with Kalyan Jewellers 24 carat gold at ₹15,136 per gm and 22 carat gold at ₹13,875 per gm.
India's gem and jewellery exports declined to US$ 4.27 billion (₹40,398.97 crore) during April–May 2026 compared to US$ 4.55 billion (₹38,848.42 crore) in the corresponding period last year, representing a 6.03% decline in dollar terms but 3.99% growth in rupee terms. According to the GJEPC, the main concern remains Plain Gold Jewellery exports, which declined sharply by 40.11% year-on-year to US$ 635.95 million from US$ 1.06 billion in the corresponding period last year. The GJEPC has flagged concerns to the government about duty-free gold supply constraints for exporters, with gold consumption for export production declining to estimated 11 tonnes during April–May 2026 from around 14 tonnes in the previous year, a reduction of nearly 21.4%.
The domestic price decline mirrored international market movements, where gold futures declined by 0.14 per cent to $4,325.04 per ounce in New York. As reported by The Hindu BusinessLine, globally, gold futures declined by 0.14 per cent to the current levels. The sell-off in the Indian market reflects similar trends in global precious metals markets, with investors awaiting more clarity on the US-Iran deal following the initial agreement announced by US President on Monday.
