Gold tumbles below $4,000 as demand cools off

Gold declined below $4,000 per ounce on Monday after retreating 2.7 percent from the prior week to settle at $3,984.43. Traders in India saw 24-carat gold priced at 121,113 rupees for 10 grams during daytime transactions, according to figures from the India Bullion and Jewellers Association. Market watchers attributed the pullback to easing trade friction between Washington and Beijing alongside a strengthening American currency that reached its peak level in three months.

China’s elimination of a longstanding tax exemption for specific merchants may further reduce appetite in a major consuming nation. Despite recent losses, the precious metal has climbed more than 50 percent since January due to purchases by monetary authorities and investors seeking protection during uncertain times. Silver has retreated sharply following festive period highs near 200,000 rupees per kilogram around Dhanteras celebrations, settling at 149,660 rupees per kilogram.

Rahul Kalantri from Mehta Equities noted that American Treasury yields above 4 percent weakened interest in protective assets. Federal Reserve Chairman Jerome Powell indicated that rate reductions in December remain uncertain. Yet persistent buying by central banks and worldwide economic worries provide foundational strength for precious metals. Support for gold appears around 120,870 to 120,480 rupees, with resistance between 121,890 and 122,300 rupees.

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