Washington. A decline in gold rates has been recorded in the international market. Higher than expected inflation dulled the shine of gold. The pressure on gold has increased after the sharp inflation figures in America and the strict stance of the Federal Reserve officials. There is already an expectation in the market that interest rates will increase in December.
Gold fell 1.2% to below $4,000 an ounce in US early trading hours. Meanwhile, the dollar reached its strongest level since May 2025. Gold fell 1% to $3,984.15 an ounce. If this impacts the domestic market, a big fall in the price of gold may be seen here too. As far as the domestic market is concerned, on Wednesday night, 10 grams of gold on MCX fell by 0.57 percent and closed at Rs 139730. Whereas, silver closed at Rs 184622 per kg with a slight rise. In the bullion markets, 24 carat spot gold without GST closed at Rs 140603 per 10 grams. Whereas, silver closed at Rs 185900 per kg.
Let us tell you that the price on MCX keeps changing from moment to moment. Whereas, prices are fixed in the bullion markets in the afternoon and evening. Here the prices of gold and silver are different from MCX. GST, local tax and jewelery making charges are also attached to them.
Why did gold fall?
There are many reasons for the fall in gold prices. First, inflation in America turned out to be faster than expected. Second, Federal Reserve officials have shown a tough stance. Traders now consider a 0.25% interest rate increase in December almost certain. There is also a small possibility of a 0.50% increase. Third, the rise of the dollar index. Let us tell you that with the increase in interest rates, gold becomes less attractive because interest is not earned on gold. Due to the strengthening of the dollar, gold becomes expensive for buyers from other countries.
Why is the $4,000 level important?
According to Bloomberg news, despite many pressures, gold is mostly staying above $4,000 an ounce. It seems that buyers are considering this level as important support. Central banks' buying also continues, although expectations of inflation and tighter monetary policy are weighing on the near-term outlook.
What did the Fed official say?
Chicago Fed Chairman Austin Goolsby called October's inflation report “borderline disturbing.” He said that the real problem of inflation is arising, and it has to be dealt with.