Strong Dollar, Global Peace Hopes Push Gold Prices Down

Gold prices, which recently touched record highs, have been on a downward trend over the past few days. Notably, on Thursday alone, gold prices saw a significant drop. In the domestic market, the price of 10 grams of 24-carat pure gold declined by ₹2,180, bringing the current rate to ₹95,730 per tola. Over the past ten days, gold prices have decreased by nearly ₹5,000, marking a noteworthy correction.

Analysts have attributed the decline in domestic gold prices to favorable international developments. Currently, gold is trading at $3,236.94 per ounce in the international market. They pointed out that easing trade tensions between the United States and China, as well as emerging signals of peace talks between Russia and Ukraine, have influenced the global sentiment around gold.

In addition to these geopolitical factors, analysts noted that the strengthening of the US dollar has reduced the appeal of gold as a safe-haven investment. As a result, gold prices have dropped for the second consecutive day. Experts further suggested that upcoming U.S. economic data could also influence gold prices in the near future.

Despite the recent decline in prices, the recently concluded Akshaya Tritiya festival witnessed robust domestic demand for gold. Consumers remained enthusiastic about purchasing gold on the auspicious day, even at elevated price levels. Pankaj Arora, President of the All India Jewellers and Goldsmiths Association, stated that around 12 tonnes of gold worth ₹12,000 crore and silver worth ₹4,000 crore were sold on Akshaya Tritiya, bringing total sales to approximately ₹16,000 crore.