Gold Futures Gain on Muhurat Trading Despite Weak International Prices

Gold futures on the Multi Commodity Exchange gained ground during Muhurat trading on Diwali, with December contracts settling at Rs 1,42,552 per 10 grams, reflecting a 0.27 per cent increase from the previous close.

The modest rally in domestic futures contrasted with weakness in international gold markets, where bullion prices came under pressure on Monday morning. Global gold markets have been navigating headwinds as investors reassess their positions amid shifting economic conditions.

Muhurat trading, observed during the Diwali festival, has traditionally been an auspicious occasion for Indian investors and traders. The ceremonial session provides an opportunity for market participants to make symbolic trades and set the tone for the new financial year according to Hindu calendar customs.

Spot gold prices in major Indian metropolitan areas including Mumbai, Delhi, and Bengaluru typically track international movements with adjustments for local premiums, currency fluctuations, and customs duties. Investors monitoring both domestic futures and physical gold purchases should remain cognisant of the divergence between domestic sentiment and international price trends.

Market analysts note that gold prices remain sensitive to broader macroeconomic factors, including currency movements, interest rate expectations, and geopolitical developments. Retail and institutional buyers in India continue to view gold as a hedge against inflation and portfolio volatility.