Gold tumbles as rupee weakens, investors on edge
Gold remained weak on Wednesday following its steepest drop in more than a week as traders assessed dollar strength against widespread market caution. Spot prices held near $3,940 per ounce after falling almost 2 percent during the prior session, while the dollar index posted its fifth consecutive daily advance. Global stock markets continued their slide in the sharpest retreat in nearly a month amid worries about elevated asset valuations, with most commodities declining alongside metals.
Indian markets reflected similar pressure on Tuesday as the firmer dollar weighed on precious metals. December gold futures on the Multi Commodity Exchange retreated 0.43 percent to Rs 1,20,886 per 10 grams, and silver contracts for the same month declined 0.41 percent to Rs 1,47,154 per kilogram. The Indian Bullion Association reported 24-carat gold at Rs 1,21,120 per 10 grams and 22-carat at Rs 1,11,027 on November 4.
The metal has climbed roughly 1,200 percent during the past two decades, advancing from Rs 7,638 in 2005 to above Rs 1,25,000 in 2025 as of September. Analysts expect weaker American economic figures to support additional Federal Reserve rate reductions and push prices toward $4,200 per ounce by year’s end.
