Gold prices drop 0.48% a day before Dhanteras, US dollar rise and macro data contribute to decline

Meanwhile, Gold futures prices on the MCX for December 05, 2024 dropped by 0.42% or by ₹332 to 78,200.

Also Read: Microsoft fires employees who organized vigil for Palestinians killed in Gaza

The short-term decline in gold prices has been attributed to a rise in the US dollar (Currently at ₹84.0725 per dollar) as investors eyed US macro data which includes inflation data and GDP prints to anticipate potential rate cuts by the US federal Reserve.

This also comes a day before Dhanteras which starts on Tuesday, October 29, 2024. Gold prices on the occasions of Dhanteras and Diwali have gone up nearly 30% over the last one year.

Gold even beat domestic equity in terms of prices, with the benchmark BSE Sensex rising only 10.79% this year in comparison.

Also Read: Trump backer Elon Musk became an entrepreneur as an illegal immigrant, here’s how: Report

Gold prices rose over the year owing to multiple factors including geopolitical tensions like the Russia-Ukraine war and the Israel-Gaza conflict.

Another reason was the decision of China’s central bank to reduce its 1-year and 5-year prime loan rates by 25 basis points, according to the report.

Also Read: Google to develop AI that takes over computers, code-named Project Jarvis: Report