NEW DELHI– Gold prices declined on Tuesday as investors took profits amid a stronger U.S. dollar and reduced expectations for further Federal Reserve rate cuts this year.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold stood at Rs 1,19,916 as of 12:30 p.m. December gold futures on the Multi Commodity Exchange (MCX) fell Rs 836, or 0.69 percent, to Rs 1,20,573 per 10 grams, while the U.S. dollar index rose 0.08 percent to 99.95.
Analysts said the combination of a firm dollar, easing U.S.-China trade tensions, and a diminished likelihood of additional Fed rate cuts has reduced gold’s appeal as a safe-haven asset. “Gold hovered around the $4,000 mark as the dollar remained resilient at over three-month highs. Fed officials continued pressing competing views on the economy — a debate expected to intensify ahead of the Fed’s December policy meeting and in the absence of key economic data due to the federal government shutdown,” said Manav Modi, Analyst – Precious Metal Research, Motilal Oswal Financial Services Ltd.
Adding to global headwinds, China has ended a long-standing tax exemption for certain gold retailers, potentially dampening demand in the world’s largest consumer market.
The World Gold Council (WGC) reported that central banks worldwide increased gold purchases by 28 percent in the third quarter of calendar year 2025, reflecting continued interest in the metal as a strategic reserve asset.
“Gold prices began November on a positive note supported by a weaker rupee and Comex gold holding above $4,010. With the ongoing U.S. government shutdown limiting key data releases, investors are now focused on upcoming manufacturing and non-manufacturing PMI readings,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Analysts expect continued volatility in the near term, forecasting that gold prices may fluctuate between Rs 1,18,000 and Rs 1,24,000 per 10 grams, influenced by developments in U.S.-China and U.S.-India trade negotiations. (Source: IANS)
