CHENNAI: Gold prices declined through the week ended October 31, tracking weakness in international markets as the US dollar strengthened and investors booked profits after recent record highs.
In the global market, spot gold slipped below the psychological level of $4,000 per ounce during the week, marking its first significant correction in several weeks. Prices fell to around $3,960–$4,010 per ounce between October 27 and 31, pressured by a stronger dollar and rising expectations that the US Federal Reserve may delay interest rate cuts. Analysts described the pullback as a “healthy correction” following the sharp rally earlier in October, when gold had briefly touched an all-time high above $4,380 per ounce.
The US Commerce Department data and firm Treasury yields also weighed on sentiment, as investors shifted focus from safe-haven assets to higher-yielding investments. However, analysts said the long-term outlook for gold remains positive, supported by sustained central bank buying and lingering geopolitical uncertainties.
In the Indian market, gold mirrored the global trend and traded lower through the week. On October 27, 24-carat gold was quoted around Rs 1,24,000 per 10 grams, before easing to about Rs 1,22,000 by the end of the week. Prices fell by roughly Rs 1,500–Rs 2,000 per 10 grams across major cities including Delhi, Mumbai, and Chennai. Silver also moved in tandem, shedding more than half a percent over the week.
Traders attributed the decline to a combination of international cues and a stronger rupee, which reduced import costs. Retail demand remained steady ahead of the wedding season, though investors adopted a cautious stance amid volatility in global prices.
Analysts believe the current correction may offer short-term buying opportunities for consumers, particularly if gold stabilizes above Rs ₹1,20,000 per 10 grams. However, they expect near-term movements to remain range-bound, influenced by US economic data, currency fluctuations, and global risk sentiment.
Overall, gold ended the week on a softer note but retained a broadly positive medium-term outlook, with investors watching for fresh triggers from global monetary policy signals and geopolitical developments.
