Gold prices in India declined on Friday, with the price per gram falling to 14,280.85 Indian Rupees (INR) from 14,383.45 INR the previous day, and the price per tola dropping to 166,569.00 INR from 167,765.80 INR, according to FXStreet data [1]. This marks a continuation of a broader global trend, as Gold (XAU/USD) extended its pullback from the monthly peak, registering its fourth straight day of losses [2]. The decline in Gold prices is attributed to sustained buying interest in the US Dollar (USD), with the USD Index (DXY) reaching its highest level since April 8 [2].
Several factors are supporting the USD and undermining demand for Gold. These include stalled US-Iran peace talks, ongoing geopolitical risks in the Middle East, and rising expectations for interest rate hikes by the US Federal Reserve (Fed) [2]. US President Donald Trump stated in a Fox News interview that he would not be much more patient with Iran, and a commercial vessel was reportedly seized by Iranian personnel off the UAE, raising concerns over energy supply routes through the Strait of Hormuz [2]. These developments have kept crude oil prices elevated and contributed to market volatility.
Economic data from the US has also played a significant role. The headline US Consumer Price Index (CPI) rose to a 3.8% year-over-year rate in April, with the core gauge at 2.8%. The US Producer Price Index (PPI) surged 1.4% last month, pushing the annual rate to 6.0%. Additionally, US Retail Sales expanded for the third consecutive month in April, indicating resilient consumer spending despite inflationary pressures [2]. According to the CME Group's FedWatch Tool, traders are now pricing in a nearly 40% chance that the Fed will raise borrowing costs by year-end, further supporting the USD and pressuring Gold prices [2].
On the geopolitical front, US-China relations have stabilized following a high-level summit between President Trump and Chinese President Xi Jinping, though tensions remain over Taiwan. Trump and Xi are set for a second day of talks in Beijing, and further headlines could add to market volatility. Meanwhile, the XAU/USD pair is on track to register weekly losses, with the broader fundamental backdrop favoring bearish sentiment for Gold [2].
CONCLUSION
Gold prices have fallen for the fourth consecutive day, driven by a stronger US Dollar, hawkish Fed expectations, and ongoing geopolitical tensions. The combination of robust US economic data and rising interest rate bets has weighed on Gold, with the market outlook remaining bearish in the near term. Investors are advised to monitor further developments in US-China relations and the Middle East for potential impacts on Gold prices.