Gold prices experienced a slight decline, closing down by 0.28 per cent at Rs 134,521, as traders took profits following the recent rally, even in the context of a generally favorable macroeconomic and geopolitical environment. The yellow metal maintains its foundational support due to anticipations of additional U.S. monetary easing and ongoing global uncertainties.

Federal Reserve Governor Christopher Waller emphasized that the U.S. central bank retains the capacity to lower interest rates, estimating that policy rates currently sit approximately 50–100 basis points above neutral levels. While he emphasized that there is no immediate need for aggressive measures, he recognized that the U.S. labor market is slowly weakening, permitting the Fed to adjust policy at a deliberate pace if necessary.

On the outlook front, Morgan Stanley upheld its optimistic medium-term projection, anticipating gold prices to reach USD 4,800 per ounce by the fourth quarter of 2026. Physical demand, however, exhibited a mixed performance. In India, discounts expanded to as much as USD 34 per ounce due to lackluster wedding-season purchasing at historically high price points, while demand from China remained tepid. In other parts of Asia, the premiums and discounts indicated a measured approach to purchasing in the face of market volatility.

From a technical standpoint, the market is experiencing long liquidation, as evidenced by a 0.92 percent decrease in open interest coupled with a Rs 373 decline in price. Support is identified at Rs 133,640, with potential further decline toward Rs 132,755, while resistance is noted at Rs 135,500, and a breach above this level could lead to a target of Rs 136,475.