Gold prices were down marginally at ₹65,566 per 10 grams taking the cue from the weak trend in the global markets.
Opening weak at ₹65,615 against ₹65,646, gold prices on Tuesday fell by ₹80 after hitting a new high on Monday, according to data available with the Indian Bullion and Jewellers Association.
In the US market, the yellow metal dropped to $2,180 an ounce after hitting an all-time high of $2,195 on Monday on expectations of the US Fed cutting rates in June. The focus has now shifted to the all-important US Consumer Price Index inflation data to be released late on Tuesday.
In MCX, gold for April delivery was down by ₹462 at ₹65,573 per 10 gram while the May contract dipped by ₹661 at ₹73,853.
Ravindra Rao, Head Commodity Research, Kotak Securities, said COMEX Gold prices rose for the eight consecutive day as signs of a slowdown in US economy raised the odds of a Fed pivot this year, weighing down on the dollar index and treasury yields.
If the ongoing disinflationary trend continues, it might add to rate cut bets and boost gold prices, he added.
Rahul Kalantri, VP Commodities, Mehta Equities, said hopes for a Federal Reserve rate cut bolstered gold and silver, pushing gold to trade at record highs. Hedge funds have notably increased their long positions in gold to unprecedented levels, he said.
According to US CFTC (Commodity Futures Trading Commission) data, he added net long positions in gold surged by 95 per cent, reaching 109,763 contracts—a significant increase from the previous week.