Gold Prices Drop Below ₹5,000 Per Ounce Amid Hawkish Fed Speculation

Gold prices declined on January 30, 2026, after investors responded to speculation that the next US Federal Reserve chair may adopt a more hawkish monetary stance. Despite the fall, gold remains positioned for its strongest monthly gain since 1999, supported by safe‑haven buying.

The broader trend continues to reflect concerns around global economic stability and geopolitical tensions. Domestic and international markets both registered corrections following sharp gains earlier in the week.

Domestic Gold Prices Ease After Record Highs

On the Multi Commodity Exchange of India (MCX), gold for April delivery traded lower following its recent surge to record levels of around ₹1.83 lakh per 10 grams. Profit‑taking intensified after several sessions of strong upward momentum.

The domestic decline aligned with traders reassessing positions ahead of potential US policy signals. Prices, however, remained elevated compared with historical averages.

International Prices Retreat in Asian Session

Globally, Comex gold futures for April delivery declined $118.06 to $5,236.74 per ounce during the Asian trading session. The drop reflected concerns that a more hawkish Federal Reserve chair could tighten monetary conditions.

Investors shifted to book profits after gold recently touched record highs. Market participants cited heightened volatility due to shifting expectations over the US rate strategy.

Central Bank Buying Moderates in Q4 2025

The World Gold Council (WGC) reported that central bank gold purchases moderated during Q4 2025. The slowdown came after several quarters of robust accumulation by global central banks. However, the WGC noted that strong investor inflows helped counterbalance the reduced official‑sector demand. Market observers stated that diversified sources of buying have supported overall price resilience.

Jewellery Demand Faces Pressure as Imports Likely to Fall

The WGC also warned that India’s gold imports may decline during the year. It stated that record‑high prices continue to weigh on jewellery demand in India, the world’s second‑largest consumer of gold. The expected slowdown in imports reflects reduced retail demand due to elevated price levels. Jewellery buyers have reportedly delayed purchases amid persistent price volatility.

Read More: Gold Rally Cuts India’s 2025 Gold Consumption.

Conclusion

Gold prices dropped below ₹5,000 per ounce as investors responded to speculation over a potentially hawkish shift in US monetary leadership. Domestic markets corrected after touching record highs, while international prices also eased.

Central bank buying moderated in Q4 2025, although investor inflows continued to support the market. With jewellery demand under pressure, India’s gold imports may soften in the coming months.

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