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Informist, Wednesday, Jan. 7, 2026

MUMBAI – Spot gold prices fell Wednesday as gold futures contracts on the Multi Commodity Exchange and the COMEX fell due to profit booking after prices hit a one-week high in the previous session. However, the fall in prices was limited due to rising expectations of a rate cut by the US Federal Reserve.

Spot gold of 99.9% purity was traded in the Mumbai market at INR 136,615 per 10 grams, down from INR 136,909 per 10 grams Tuesday, said Kumar Jain, spokesperson, India Bullion and Jewellers Association. Prices were down Wednesday due to profit booking and also fell as market participants cautiously await the US economic data for further cues on interest rate cut by the US Federal Reserve, analysts said.

Additionally, market participants are expecting changes in customs duty on the precious metal in the forthcoming budget of the central government. "If customs duty on gold increases, prices could rise to INR 200,000," Jain said. At present, 6% customs duty is levied on gold imports.

Moreover, the market is expecting a rate cut by the US Federal Reserve this year. Typically, gold performs well in a low-interest rate environment due to its non-interest-yielding nature. These expectations rose after weak US economic data. The US manufacturing activity declined to a 14-month low in December. The US manufacturing Purchasing Managers' Index dropped to 47.9 in December, the lowest level since October 2024, from 48.2 in November. Economists polled by Reuters had forecast the PMI would be little changed at 48.4.  

"Fed Governor Stephen Miran said the US central bank would need to cut interest rates by more than a percentage point in 2026, arguing that monetary policy is restraining the economy," SMC Global Securities said in a report. 

At 1645 IST, the most-active February GOLD contract on the MCX was down 0.6% at INR 138,230 per 10 grams. The most-active February contract on COMEX was down 0.4% at $4,475.7 per ounce.  End

US$1 = INR 89.88

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Reshma Ravi

Edited by Akul Nishant Akhoury

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