Why Have Gold Prices Fallen Below $4,000 per Ounce?
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Synopsis
Spot gold prices have dipped below $4,000 per ounce, marking a significant decline from last week. Analysts attribute this change to reduced demand amid easing US-China trade tensions and a stronger dollar. Despite the pullback, gold remains over 50% higher year-to-date, driven by central bank purchases. Will gold rally again soon?
Key Takeaways
- Spot gold prices have fallen below $4,000 per ounce.
- The price of 10 grams of 24-carat gold is Rs 1,21,113.
- Demand decline is linked to easing US-China trade tensions.
- Gold prices remain over 50% higher year-to-date.
- Analysts predict a potential rally in gold prices soon.
Mumbai, Nov 3 (NationPress) Spot gold prices have dropped below the $4,000 per ounce mark, following a substantial rise earlier this year. The latest data indicates a decrease of 2.7 percent from last week, bringing the price down to $3,984.43 an ounce.
During today’s trading session, the cost of 10 grams of 24-carat gold stood at Rs 1,21,113, as reported by the India Bullion and Jewellers Association (IBJA).
Experts suggest that the decline in demand is linked to easing trade tensions between the US and China, alongside a surge in the dollar index, which has reached its highest level in three months.
After a significant rally, both gold and silver have experienced a decrease in value last week.
Moreover, Beijing's recent decision to eliminate a long-running tax rebate for specific retailers may further dampen demand in one of the globe's largest bullion markets, according to various media reports.
Despite this retreat, gold prices are still over 50 percent higher year-to-date, primarily driven by central bank purchases and persistent safe-haven demand. Silver prices have also seen a notable correction after reaching festive-season highs of approximately Rs 2 lakh per kilo during the Dhanteras period.
As per the data from IBJA, the price for one kilogram of silver was Rs 1,49,660.
However, many analysts consider this pullback to be temporary, predicting another uptick in the near future.
“The increase in US bond yields surpassing 4 percent has diminished investor interest in safe-haven assets. Comments from Fed Chair Jerome Powell regarding the uncertainty of rate cuts in December have also contributed to the subdued sentiment. Nevertheless, ongoing central bank purchases and persistent global economic uncertainties continue to provide essential support to bullion prices,” stated Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Analysts have identified support for gold at Rs 1,20,870 to Rs 1,20,480, while resistance is expected at the Rs 1,21,890 to Rs 1,22,300 range. In the case of silver, support is seen at Rs 1,47,450 to 1,46,750 and resistance at Rs 1,49,340 to Rs 1,50,280.
Point of View
I observe that the recent dip in gold prices serves as a reminder of the volatile nature of precious metals. While the current decline reflects shifts in demand and external economic factors, the underlying support from central bank activities indicates a resilient market. We remain committed to providing our audience with accurate and insightful financial news.
NationPress
24/12/2025
Frequently Asked Questions
What caused the recent drop in gold prices?
The drop in gold prices can be attributed to easing trade tensions between the US and China, a stronger dollar, and increased US bond yields.
How much has gold dropped this week?
Gold has decreased by 2.7 percent from last week, now priced at $3,984.43 per ounce.
What is the current price of silver?
The price for one kilogram of silver is currently Rs 1,49,660.
Is the drop in gold prices permanent?
Many analysts view this decline as temporary, with potential for a rally in the near future.
What are the support and resistance levels for gold?
Gold has support at Rs 1,20,870 to Rs 1,20,480, with resistance at Rs 1,21,890 to Rs 1,22,300.
