Daijiworld Media Network - New Delhi

New Delhi, Nov 5: Gold prices continued to trade weak on Wednesday, extending losses after their sharpest fall in more than a week, as investors balanced the strength of the US dollar against growing risk aversion in global markets.

Spot gold hovered near $3,940 per ounce, after tumbling almost 2% in the previous session, snapping a steady upward run amid five consecutive days of gains in the dollar index.

Global equity markets also slumped, posting their steepest decline in nearly a month on fears of overvalued stocks and a potential slowdown in global growth. The cautious sentiment spilled over into commodities, including gold and silver.

In the Indian market, gold prices mirrored the global trend. On the Multi Commodity Exchange (MCX), December gold futures dropped 0.43% to Rs 1,20,886 per 10 grams, while silver futures for December delivery slid 0.41% to Rs 1,47,154 per kilogram.

According to the Indian Bullion Association (IBA), the price of 24-carat gold stood at Rs 1,21,120 per 10 grams, while 22-carat gold was priced at Rs 1,11,027 per 10 grams on November 4. Silver (999 fine) was quoted at Rs 1,47,430 per kilogram.

At the retail level, average gold prices were around Rs 1,22,450 per 10 grams for 24-carat, Rs 1,12,240 for 22-carat, and Rs 91,830 for 18-carat gold.

Despite short-term volatility, gold’s long-term performance remains stellar. Over the past two decades, the yellow metal’s price has jumped by nearly 1,200% — from Rs 7,638 in 2005 to over Rs 1,25,000 per 10 grams in 2025 (as of September). It has delivered positive annual returns in 16 of the last 20 years, making it one of 2025’s best-performing assets, up 56% year-to-date (YTD).

Market analysts said the current weakness is likely a consolidation phase.

“The lack of major US economic data has added to uncertainty, but weaker numbers could push the Fed toward further rate cuts — which may drive gold to around $4,200 per ounce by year-end,” experts noted.