Gold prices declined sharply on Tuesday, with MCX gold futures slipping nearly 3% amid a broader pullback in global precious metals.
As per the latest data, Gold Futures (continuous contract) on the Multi Commodity Exchange were trading at Rs 1,61,201 per 10 grams (DAG), down Rs 4,873 or 2.93%, as of 17:11 GMT+5:30.
Global gold retreats from record highs
In international markets, spot gold eased to the $5,200–$5,300 per ounce range, down roughly 1–2% from recent highs above $5,400. The decline follows a sharp rally triggered by escalating geopolitical tensions in the Middle East, which had pushed safe-haven demand to elevated levels.
Why gold is falling today
The primary driver behind the correction is a stronger US dollar, with the dollar index climbing to a one-month high. A firmer dollar makes gold more expensive for overseas buyers, typically weighing on demand and prices.
Additionally, markets are pricing in a higher probability that the US Federal Reserve may hold interest rates steady for longer. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold, contributing to the downside pressure.
Profit booking after a strong rally is also playing a role. Following record highs near $5,400–$5,417, traders appear to be unwinding long positions, leading to intraday volatility.
Broader precious metals trend
Silver has fallen more sharply in comparison, highlighting gold’s relative resilience as a traditional safe-haven asset. Despite the pullback, gold remains elevated compared to levels seen earlier in 2025, reflecting ongoing geopolitical uncertainty and global macro risks.
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