Gold Prices Plummet Amid Dollar Strength and Easing Tensions

For the second consecutive week, gold prices have fallen amid a stronger US dollar and easing geopolitical tensions. The US Federal Reserve's cautious approach to future rate cuts has further dented the demand for this safe-haven asset.

On the Multi Commodity Exchange, gold futures for December delivery dropped by Rs 2,219, or 1.8%, last week, reaching an intra-day low of Rs 1,17,628 per 10 grams on October 28. Globally, Comex gold futures also saw a decline, falling by 3.41% to USD 3,996.5 per ounce.

The stronger US dollar has made gold more expensive for foreign buyers, contributing to a sell-off. Meanwhile, easing tensions between Russia and Ukraine, positive outcomes from Trump-Xi discussions, and India's festival buying season conclusion have also played a role in the price decrease.