Mumbai: Gold prices in India fell sharply on Tuesday, giving some relief to buyers after a long period of record highs. The price of one sovereign of gold dropped by ₹1,120 in a single day, reflecting a combination of global market pressure, a weak rupee and falling stock markets
The price of gold per gram declined by around ₹140, bringing the rate close to ₹12,270 for 22 carat gold in the retail market. Traders said the fall came mainly due to profit booking after gold touched historic highs in recent sessions.
At the same time, the Indian rupee continued to remain under pressure. The currency weakened to around ₹90.83 against the US dollar, hovering near its lowest levels. A weaker rupee usually makes imported commodities like gold more expensive, but the impact was offset today by a global pullback in gold prices.
Stock markets also opened on a weak note, adding to the cautious mood among investors. The Sensex and Nifty slipped as selling pressure was seen across sectors, driven by concerns over foreign fund outflows and global economic uncertainty.
Market experts said gold prices have cooled slightly as investors reassess positions ahead of key economic data from the United States, which could influence future interest rate decisions. Higher interest rates generally reduce the appeal of non interest bearing assets like gold.
Despite today’s drop, analysts pointed out that gold prices are still near historic highs and remain supported by long term factors such as geopolitical tensions, central bank buying and expectations of policy easing in the future.
For consumers, the fall has brought a brief window of relief, especially ahead of the wedding and festive season. However, traders cautioned that gold prices may remain volatile in the coming days due to currency movements and global market cues.
Overall, today’s market reflected a mixed picture, with gold easing after a strong rally, the rupee staying weak and equities facing pressure amid uncertain global signals.
At the same time, the Indian rupee continued to remain under pressure. The currency weakened to around ₹90.83 against the US dollar, hovering near its lowest levels. A weaker rupee usually makes imported commodities like gold more expensive, but the impact was offset today by a global pullback in gold prices.
Stock markets also opened on a weak note, adding to the cautious mood among investors. The Sensex and Nifty slipped as selling pressure was seen across sectors, driven by concerns over foreign fund outflows and global economic uncertainty.
Market experts said gold prices have cooled slightly as investors reassess positions ahead of key economic data from the United States, which could influence future interest rate decisions. Higher interest rates generally reduce the appeal of non interest bearing assets like gold.
Despite today’s drop, analysts pointed out that gold prices are still near historic highs and remain supported by long term factors such as geopolitical tensions, central bank buying and expectations of policy easing in the future.
For consumers, the fall has brought a brief window of relief, especially ahead of the wedding and festive season. However, traders cautioned that gold prices may remain volatile in the coming days due to currency movements and global market cues.
Overall, today’s market reflected a mixed picture, with gold easing after a strong rally, the rupee staying weak and equities facing pressure amid uncertain global signals.