New Delhi– Gold prices softened on Wednesday, extending losses from the previous session, as a stronger U.S. dollar and declining global market sentiment weighed on demand for the precious metal.
Spot gold was trading near $3,940 per ounce after falling nearly 2 percent on Tuesday, a decline that followed five consecutive days of gains in the dollar index. The firmer dollar has made gold more expensive for holders of other currencies, limiting buying interest.
Global equity markets also continued to slide, marking their sharpest pullback in nearly a month amid concerns that valuations in several sectors remain stretched. The decline in stocks has led to broader caution across commodities markets as well.
In India, gold futures mirrored the international trend. On the Multi Commodity Exchange, December gold futures slipped 0.43 percent to Rs 1,20,886 per 10 grams, while December silver futures declined 0.41 percent to Rs 1,47,154 per kilogram.
According to the Indian Bullion Association, the price of 24-carat gold was recorded at Rs 1,21,120 per 10 grams on November 4, while 22-carat gold stood at Rs 1,11,027 per 10 grams. Silver (999 purity) was priced at Rs 1,47,430 per kilogram.
Retail market averages currently place 24-carat gold at roughly Rs 1,22,450 per 10 grams, 22-carat at Rs 1,12,240, and 18-carat at Rs 91,830.
Despite the recent dip, gold has produced substantial long-term returns. Prices have risen nearly 1,200 percent in the past two decades, climbing from around Rs 7,600 per 10 grams in 2005 to above Rs 1,25,000 in 2025. The metal has posted positive returns in 16 of the past 20 years and remains among the year’s top-performing assets, up 56 percent so far in 2025.
Analysts said gold may remain in a consolidation phase in the near term, but added that softer U.S. economic data could support expectations of further Federal Reserve rate cuts later in the year.
Some market experts expect gold could approach $4,200 per ounce by year-end if monetary conditions loosen and investor demand strengthens. (Source: IANS)
