4K gold prices dropped by Rs 12,000 to Rs 756,500 per 100 grams, with a decline of Rs 1,200 per 10 grams, pricing it at Rs 75,650.

Gold prices in India Latest News Today: Gold prices have recently reached an eight-week low, pressured by a strong U.S. dollar and rising Treasury yields. Globally, spot gold dropped below the $2,560 mark, while in India, gold futures on the Multi Commodity Exchange (MCX) traded below Rs 74,000. Retail gold prices for 24K, 22K, and 18K variants also saw a significant drop across India. Experts believe that potential interest rate cuts by the Reserve Bank of India (RBI) and upcoming economic data could play major roles in determining the metal’s next movements.

Spot Gold and U.S. Gold Prices:

At the time of reporting, spot gold was trading at $2,558.27 per ounce, a decrease of 0.6%, after touching an intraday low of $2,555.44. U.S. gold futures for December have also struggled, currently down by 0.93% at $2,562.50 per ounce. The dollar index has recently surged to a one-year high, influenced by a 2.6% rise in October’s Consumer Price Index (CPI) inflation, marking an increase after a seven-month decline. The CPI figure remains above the Federal Reserve’s 2% target, impacting expectations for aggressive future rate cuts. Analysts note that gold is facing additional pressure from the strong dollar as investors digest the latest U.S. CPI figures, with the metal falling for five consecutive sessions.

According to Trading Economics data, a Federal Reserve rate cut in December remains a strong possibility, with traders currently estimating an 80% chance, up from 60% prior to the CPI release. Over the past week, gold prices have dropped by over 4%, a decline partly attributed to speculation that certain fiscal policies could lead to a halt in the Fed's rate-cut cycle. Investors are closely monitoring upcoming data, including the Producer Price Index (PPI) and weekly jobless claims, along with retail sales data due later in the week.

MCX Gold and Silver Prices:

MCX gold futures for December recorded a drop of Rs 729, or 0.98%, to trade at Rs 73,753 per 10 grams. The day’s range has been between a low of Rs 73,672 and a high of Rs 73,996. Similarly, MCX silver futures, also set to expire in December, saw a decline of Rs 1,306, or 1.46%, to Rs 87,891 per kilogram, nearing its day's low of Rs 87,777 and down from an intraday high of Rs 89,000.

Gold Prices in India:

In Indian retail markets, 24K gold prices dropped by Rs 12,000 to Rs 756,500 per 100 grams, with a decline of Rs 1,200 per 10 grams, pricing it at Rs 75,650. The price of 22K gold fell by Rs 11,000 to Rs 693,500 per 100 grams, with a 10-gram value of Rs 69,350, down by Rs 1,100. Meanwhile, 18K gold prices decreased by Rs 9,000, now priced at Rs 567,400 per 100 grams, or Rs 56,740 per 10 grams.

What Lies Ahead for Gold Prices?

Analysts observe that the current low-interest-rate environment, following two rate cuts by the U.S. Fed, along with a potential RBI rate cut, could bolster a rally in gold. Additionally, they highlight that geopolitical tensions and a sustained lower-interest-rate landscape could further support higher gold prices. Long-term forecasts suggest that global gold prices may approach $3,000, while domestic prices could reach Rs 86,000 per 10 grams, underscoring the metal’s enduring appeal as a safe-haven asset amid economic uncertainties.