Gold prices fell 0.37% to ₹76,544 on a strong dollar and rumours that the central bank would be cautious on rate cuts in 2025. The possibility of major policy changes once the US president returns to the White House in January 2025 has made global markets volatile.
In India, demand for gold has eased as local prices have risen due to the depreciation of the rupee, resulting in prices falling to $14 an ounce in almost three months. The rise in prices and the absence of major festivals have also held back imports, which are expected to fall in December. However, demand from China has picked up again ahead of the New Year, as prices rose from $5 an ounce to $2-$5 last week. Central banks have been active in the gold market, with net purchases of 60 tonnes in October, the highest monthly total in 2024.
With a contribution of 27 tonnes, India led the way in the purchase and its overall purchases have increased to 77 tonnes by the end of this year, five times more than in 2023.
