Gold Prices Dip This Week as Strong Dollar and Profit Booking Weigh on Sentiment
Global gold prices dipped below $4,000 per ounce as a stronger US dollar and firm yields pressured sentiment; Indian prices followed suit, easing by up to ₹2,000 per 10 grams.
Chennai, Nov 1: Gold prices declined during the week ended October 31, tracking a global correction as the US dollar strengthened and investors booked profits after recent record highs.
In the international market, spot gold slipped below the key $4,000 per ounce level, marking its first notable pullback in weeks. Between October 27 and 31, prices hovered between $3,960 and $4,010 per ounce, pressured by firm Treasury yields and growing expectations that the US Federal Reserve may delay interest rate cuts.
Analysts termed the correction a “healthy adjustment” following October’s sharp rally, when gold briefly touched an all time high above $4,380 per ounce. Strong US economic data and a resilient dollar prompted investors to move funds toward higher yielding assets, limiting safe-haven demand.
Despite the near-term dip, experts said the medium-term outlook for gold remains constructive, supported by steady central bank buying and persistent geopolitical risks.
In India, gold mirrored global trends, slipping by around ₹1,500–₹2,000 per 10 grams across major cities including Delhi, Mumbai, and Chennai. On October 27, 24-carat gold was priced near ₹1,24,000 per 10 grams, before easing to about ₹1,22,000 by the week’s close. Silver also edged lower, losing over half a percent.
Traders attributed the decline to the combination of global cues and a stronger rupee, which made imports cheaper. Retail demand stayed steady ahead of the wedding season, though investors showed caution amid price volatility.
Market experts believe the current correction could offer short-term buying opportunities, especially if prices stabilize above ₹1,20,000 per 10 grams. However, they expect range-bound movement in the near term, guided by US economic data, currency trends, and global risk sentiment.
Overall, gold ended the week on a softer note but retained a broadly positive medium-term trajectory, with investors eyeing cues from upcoming monetary policy signals and geopolitical developments.
