Gold prices drop below 4,000 dollars globally and fall in Delhi markets

Gold prices have dropped below 4,000 dollars globally as the spot market rate fell by 121 dollars, or 3.01 percent, to trade at 3,879 dollars per ounce of 31.1 grams. The US dollar grew stronger, causing prices to lose up to 3.60 percent at one point and touch a low of 3,857 dollars. Praveen Singh, commodity head at Mirae Asset Sharekhan, stated that if the dollar index crosses the key level of 103 and grows stronger, it could reach up to 104.50, and this development will put more pressure on gold prices. Silver also dropped by 3.56 percent to trade at 50.19 dollars.

Domestic Markets

In domestic markets, gold prices went down for the third day in a row. In the Delhi bullion market, 99.9 percent pure gold fell by 2,200 rupees for 10 grams to reach 1,43,400 rupees. The price of one kg of silver remained unchanged and closed at 1,87,500 rupees. The value of the rupee weakened by 41 paisa against the dollar and closed at its intraday low of 94.12. Forex traders stated that the domestic currency fell because the US dollar grew stronger due to the strict monetary policy stance of the Federal Reserve and signs that the RBI will likely raise the repo rate by another quarter percent in December.

Context

Global gold and silver prices often move based on the strength of the US dollar and global economic policies. Central bank decisions like rate hikes by the US Federal Reserve and the Reserve Bank of India directly affect currency values and local bullion rates.