Gold prices pull back as strong dollar and easing global tensions hit market
Reduced worries over US-China trade tensions and other global uncertainties lowered gold’s appeal as a safe-haven asset.
Analysts also suggested that the recent rapid rise in prices prompted a natural correction, bringing gold to more sustainable levels.
The decline in gold prices highlights the sensitivity of the metal to global macroeconomic trends. A stronger US dollar has reduced international buying, while easing geopolitical tensions have lessened demand for gold as a safe-haven. Market corrections after record highs are also normal, as investors rebalance portfolios.
In India, the decline in international gold prices has led to lower domestic rates, affecting both jewelry sales and gold-related stocks. Shares of major gold financing and trading companies have seen modest dips as investors recalibrate expectations. Seasonal demand ahead of festivals and weddings may provide some support, but near-term prices are likely to remain under pressure unless global risk factors or inflationary concerns rise again, say market researchers tracking the commodity trends.
They also suggest that while gold is currently in a consolidation phase, it remains an important hedge against inflation and currency volatility. Any renewed geopolitical tension or unexpected economic developments could quickly reverse the downward trend.
