Gold Prices Slide ₹12,700 From Peak; What Are the Key Triggers That Could Impact Rates This Week

Gold prices have witnessed a sharp pullback, falling nearly ₹12,700 per 10 grams from their all-time high on the Multi Commodity Exchange (MCX). 

The precious metal, which had earlier touched ₹1,32,294, now trades near ₹1,19,605, marking a 9.6% decline. 

Investor sentiment has weakened as global markets await the US Federal Reserve’s key policy decision this week.

Trade Hopes Dull Gold’s Safe-Haven Appeal

Bullion’s safe-haven status has softened amid improving trade relations between the US and China. 

Top officials from both nations are reportedly working on the framework of a potential trade agreement, expected to be reviewed by President Joe Biden and his Chinese counterpart, Xi Jinping. 

Optimism surrounding this deal has driven investors back to riskier assets, pressuring gold prices globally.

Read More: Gold Smuggling Surges in India Ahead of Dhanteras and Diwali 2025 as Prices Hit Record Highs.

Focus Shifts to the US Fed’s Rate Decision

As the week unfolds, gold traders will closely track the Fed’s policy cues, developments in global trade negotiations, and movements in the dollar index. Markets are now turning their attention to the US Federal Reserve’s interest rate announcement due Wednesday night.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.