Gold and silver futures retreated in early trading on India’s Multi Commodity Exchange (MCX) on Tuesday, July 28, with prices falling up to 1% from recent levels.
The decline mirrored weakness in international markets, where US gold prices also traded lower amid a broader risk-off sentiment.
The pullback in precious metals was driven largely by profit-booking activity as market participants adjusted positions ahead of the upcoming US Federal Reserve policy decision.
Traders are increasingly cautious, seeking to lock in gains before the central bank provides fresh guidance on the interest rate path, which directly influences the opportunity cost of holding non-yielding assets like gold.
Easing geopolitical tensions, particularly following developments involving the US and Iran, have also removed a key support pillar for safe-haven demand.
With the immediate threat perception receding, the premium previously embedded in metal prices has begun to unwind, adding to the downward pressure on both gold and silver.