.jpeg)
CHENNAI: Gold prices in India fell on Wednesday, following two days of gains. The decline was mainly driven by a drop in global gold rates and profit booking by investors, as markets turned cautious ahead of the US. Federal Reserve's policy announcement and rising geopolitical tensions in South Asia.
In the early morning trade, the price of 24-carat gold stood at ₹96,950 per 10 grams — down ₹880 from the previous close. While, 22-carat gold was priced at ₹88,871 per 10 grams, according to local jewellers.
Global Gold Trends
On the international market, spot gold dropped 1.3% to $3,383.88 per ounce, after a strong nearly 3% gain in the previous session. US gold futures also fell 1% to $3,391.80 per ounce.
Analysts attribute this dip to a "risk-on" market mood and a stronger US dollar, both of which reduce gold’s appeal as a safe-haven asset.
Key Factors Behind the Decline
US Federal Reserve Meeting:
Investors are awaiting the Fed's policy decision. While interest rates are expected to remain unchanged, markets are looking for hints from Fed Chair Jerome Powell about possible future rate cuts.
Lower interest rates typically support gold prices, as gold does not yield interest.
