Gold prices fell for the fourth straight session on Tuesday, as global markets reacted to a stronger US dollar and fading hopes of an interest rate cut by the US Federal Reserve next month.
The decline comes after last week’s broad sell-off, triggered by hawkish comments from Fed officials that reduced expectations of any near-term policy easing.
In India, gold and silver prices also reflected this weakness. As of Tuesday morning, 24-karat gold was priced at Rs 12,343 per gram and Rs 1,23,430 per 10 grams. The 22-karat gold rate stood at Rs 11,314 per gram, while 20-karat and 18-karat gold were priced at Rs 10,286 and Rs 9,257 per gram, respectively.
Silver prices too edged lower. Silver 999 fine was trading at Rs 156 per gram and Rs 1,561 per 10 grams, while Silver 925 sterling stood at Rs 144 per gram and Rs 1,444 per 10 grams.
In international markets, spot gold slipped 0.1% to $4,039.19 per ounce, while US gold futures for December delivery dropped 0.9% to $4,038.60. Spot silver also declined 0.4% to $50 per ounce.
Platinum rose slightly by 0.3% to $1,538.74, while palladium fell 0.5% to $1,386.01.
Traders say the key trigger behind the correction is the stronger dollar, which typically makes gold expensive for holders of other currencies. With the Federal Reserve signalling that inflation remains sticky, markets now expect rate cuts to be delayed. This reduces the appeal of non-interest-bearing assets such as gold.
Dr Renisha Chainani, Head of Research at Augmont – Gold for All, said gold is currently at a crucial level.
She said, “If gold prices sustain above $4,150, we are likely to see the uptrend continuing; if prices sustain below $4,050, we can see a correction towards the previous low around $3,900. This week’s failed attempt to break above $4,200 per ounce has created short-term bearish sentiment.”
Chainani added that uncertainty around the US economy, tariffs, and the next Fed move will keep price swings limited in the short term.
Silver, she pointed out, is showing more volatility. “After hitting resistance over $54, silver is facing fresh selling pressure. Although silver recovered last month’s sharp 16% fall, the market has formed a double top. I will turn firmly negative only if prices close below $50. A break below $47 will confirm the double top and set a target of $44,” she explained.
However, she added the possibility of an upside move as well: “If prices break above $53.50, we may see a run-up towards $56.”
Analysts expect gold to remain range-bound unless:
US economic data shows further weakness,
inflation cools sharply, or
the Federal Reserve hints at a definite rate cut timeline.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)