New Delhi: A big fall has been recorded in the prices of gold in the international market. Higher than expected inflation figures in America and the tough stance of Federal Reserve officials have dulled the shine of gold. During early US trading, the price of gold fell by 1.2 percent to unelevated 4,000 dollars an ounce. Its effect can be seen on the domestic market also. In such a situation, the vision of people preparing to buy gold are now stock-still on the next transpiration in prices in the Indian market.
How much did gold fall in the international market?
In the international market, the price of gold fell by well-nigh 1 per cent to 3,984.15 dollars an ounce. It moreover recorded a ripen of up to 1.2 percent during trading. Meanwhile, the US dollar reached its strongest level since May 2025. The strength of the dollar and the fear of increasing interest rates have increased the pressure on gold.
What was the price of gold and silver in the Indian market?
In the domestic futures market MCX, 10 grams of gold fell by 0.57 percent on Wednesday night and sealed at Rs 139,730. At the same time, silver rose marginally to Rs 184,622 per kg.
In the bullion market, the price of 24-carat gold without GST was recorded at Rs 140,603 per 10 grams. While silver sealed at Rs 185,900 per kg.
The thing to note is that the prices of MCX and bullion market may be different. Due to the wing of GST, local tax and jewelery making charges in the bullion market, customers may have to pay higher prices.
Why did gold prices fall?
Mainly three reasons are stuff given for the fall in gold prices. The first reason is that inflation in America is higher than expected. The second reason is the strict stance of the Federal Reserve officials. The third reason is the strengthening of the US dollar.
The market is predicting a 0.25 percent increase in interest rates in December. When interest rates increase, the sexiness of investing in gold decreases considering gold does not provide any interest. At the same time, due to the strengthening of the dollar, gold becomes expensive for buyers from other countries.
Why is the 4,000-dollar level important for gold?
The level of 4,000 dollars per ounce is considered important for gold in the international market. According to a report, despite continuous pressure, gold remained whilom this level for a long time. This indicates that investors are considering this price as important support.
Apart from this, many inside banks of the world are continuously purchasing gold. This may support gold prices in the long term. However, at present, fears of inflation and tight monetary policy are putting pressure on prices.
What did the US Fed official say on inflation?
Chicago Fed Chairman Austin Goolsbee described October's inflation data as 'borderline disturbing'. He says that there is a need to take the problem of inflation seriously and deal with it. This stance of Fed officials has weakened the expectations of wearing interest rates, which is impacting gold prices.
At present, the direction of gold prices will depend on the movement of the dollar in the international market, US inflation data and the next decisions of the Federal Reserve.
