Gold prices dip as strong dollar, weak global sentiment drag

Gold prices remained under pressure after witnessing their sharpest decline in over a week, as investors weighed the recent strength of the US dollar against a broader risk-off sentiment across global markets.

Spot gold hovered around $3,940 per ounce after sliding nearly 2 per cent in the previous session, following five straight days of gains in the dollar index. Global equities also extended their decline, marking their steepest fall in almost a month amid concerns about stretched valuations.

Most other commodities followed suit, adding to the overall weakness in market sentiment. In India, gold prices also slipped on Tuesday, due to the firm dollar. On the Multi Commodity Exchange (MCX), December gold futures fell 0.43 per cent to Rs 1,20,886 per 10 grams, while silver December contracts dropped 0.41 per cent to Rs 1,47,154 per kilogram.

According to the Indian Bullion Association (IBA), the price of 24-carat gold stood at Rs 1,21,120 per 10 grams and 22-carat gold at Rs 1,11,027 per 10 grams on November 4. Silver (999 fine) was priced at Rs 1,47,430 per kilogram. The average retail gold prices in India currently stand at Rs 1,22,450 per 10 grams for 24-carat, Rs 1,12,240 for 22-carat, and Rs 91,830 for 18-carat gold.

Despite the recent dip, gold has delivered strong returns over the years. Over the last two decades, gold prices have surged by nearly 1,200 per cent -- from Rs 7,638 in 2005 to over Rs 1,25,000 in 2025 (as of September).