Domestic bullion markets witnessed intense selling pressure on Thursday as gold prices tumbled by Rs 1,300 per 10 grams across major Indian hubs. The sharp decline comes on the back of aggressive profit-booking on the Multi Commodity Exchange (MCX) and a stronger US dollar, which weighed heavily on international spot prices.

Following the downward revision, 24-karat gold eased significantly, bringing relief to retail jewelry buyers while triggering caution among short-term commodity traders.

City-Wise Price Overview

Retail rates across major metropolitan centers adjusted downward in line with international futures:

* Delhi: 24-karat gold stood at approximately Rs 76,400 per 10 grams, while 22-karat gold was quoted at Rs 70,050 per 10 grams. * Mumbai: Pure 24-karat gold traded near Rs 76,250 per 10 grams, with 22-karat retail grade at Rs 69,900 per 10 grams. * Chennai: 24-karat metal traded at around Rs 76,800 per 10 grams, with 22-karat at Rs 70,400 per 10 grams. * Kolkata: 24-karat gold mirrored national trends at Rs 76,250 per 10 grams, and 22-karat stood at Rs 69,900 per 10 grams.

Silver prices followed a parallel trajectory, shedding value alongside the yellow metal amid broader weakness in precious commodity baskets.

Key Factors Driving the Price Correction

Market analysts point to multiple macroeconomic dynamics triggering the mid-week slump:

* Resurgent US Dollar: The US Dollar Index hovered near multi-week highs, making dollar-denominated assets more expensive for overseas buyers and dampening spot bullion demand. * Elevated Treasury Yields: A modest uptick in benchmark sovereign yields reduced the relative appeal of non-yielding assets such as physical gold. * Domestic Profit Booking: Following weeks of elevated valuations driven by festive and wedding demand, wholesale jewelers and institutional traders opted to lock in gains ahead of upcoming global economic indicators.

Market Outlook and Analyst Projections

Commodity analysts suggest that while the immediate sentiment remains soft, underlying structural support for gold persists.

"The current correction represents a healthy technical pullback after an extended rally," noted a senior commodities strategist in Mumbai. "Geopolitical uncertainties and long-term central bank reserve diversification will likely limit downside risks, providing a solid floor at lower price thresholds."

Retail jewellers expect footfalls to stabilize over the weekend as prospective bridal buyers take advantage of the sudden dip in prices before the next retail wedding surge.