Gold Prices Ease from Record Highs; Investors Await Key US Data
Global gold prices softened slightly after recently touching record highs, as traders turned cautious ahead of critical US economic indicators and a stronger dollar weighed on market sentiment.
On Wednesday, spot gold dipped 0.2% to around $4,084 per ounce, while US gold futures traded close to $4,100. Analysts describe this decline as a healthy correction following the sharp rally that pushed prices up nearly 56% in 2025, breaking the $4,000 mark earlier in October.
US Inflation Data in Focus
The mild pullback is primarily attributed to:
- A firmer US dollar, making gold costlier for holders of other currencies
- Market caution ahead of the upcoming US Consumer Price Index (CPI) release
The inflation outcome is expected to shape the Federal Reserve’s next steps. Investors have priced in a potential 25 basis point rate cut, a move that typically supports gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets.
Global Factors Driving the Rally
Gold’s strong performance this year has been supported by:
- Geopolitical tensions
- Expectations of monetary easing
- Record central bank purchases
However, recent developments have eased some safe-haven demand:
- US President Donald Trump signaled progress in US-China trade discussions
- Talks hinting at a possible peace framework between Russia and Ukraine
- New US sanctions on Russian oil firms, but with diplomatic signals in the background
Indian Market Mirrors Global Trend
India - the world’s second-largest consumer of gold - has reflected the global price pattern. As of October 23:
- 24K gold stands at ₹12,545 per gram
- 22K gold at ₹11,500 per gram
Buyers, however, remain optimistic as the festive season supports steady demand.
Outlook Remains Strong
Despite short-term fluctuations, experts say gold continues to be a structurally strong investment, backed by:
- Persistent geopolitical risks
- Central bank buying
- Expectations of lower global interest rates
With the focus now on the US inflation data and upcoming Fed commentary, the market anticipates further clarity on gold’s next price direction in the days ahead.
