Gold Price Today: Why MCX Rates Are Down Over 1% And What's Driving The Decline

Gold Prices Today: Gold prices witnessed declines on November 24. The price of the yellow metal fell significantly on the Multi-Commodity Exchange (MCX). Gold Futures with December 5 expiry decline 1.27 per cent to an intraday low of Rs 1,22,605 per 10 grams. At the day’s low, gold prices have fallen over 7 per cent from the record high levels of Rs 1,32,294 per 10 grams touched earlier this year.

Physical gold prices also came under pressure, with the price of 24 carat gold trading around Rs 12,528 per gram, the price of 22 carat gold was around Rs 11,485 per gram, and 18 carat gold was around Rs 9,400 per gram. The price of 24-carat gold declined by Rs 71 per gram, and the price of 22-carat gold fell by Rs 65 per gram. The decline in gold prices followed a decline in global spot gold prices as the price of gold fell below the $4,050 per troy ounce levels.

Why Are Gold Prices Declining

Gold prices came under pressure due to multiple weak cues such as concerns regarding future rate cuts by the US Federal Reserve, strengthening US dollar, a shift in domestic consumer demand for physical gold and other factors.

Reduced Hopes of A December Rate Cut

Gold prices fell on November 24 as the market priced in the reduced chances of the US Federal Reserve rate cut at its upcoming December meeting. While the signals regarding a potential rate cut continue to remain mixed, recent US economic data suggest that the chances of a rate cut are low. The data hints towards a delayed but stronger-than-expected non-farm payrolls report. Typically, a stronger economic performance reduces the urgency for the US Federal Reserve to reduce borrowing costs. Historically, gold tends to perform better in low-interest-rate environments since the asset does not provide investors with any yield, unlike bonds. Amid the expectation that interest rates are likely to remain 'higher for longer,' investor sentiment shifts towards preferring interest-giving assets such as bonds, potentially pulling capital out of gold.

Strengthening US Dollar (USD)

Another key factor that contributed to the decline in gold prices is the strengthening of the US dollar. The Dollar Index has strengthened over the past month. On November 24, 2025, the U.S. dollar was largely stable or slightly firmer against a basket of currencies. The Dollar Index also traded largely flat and hovered around the 100.20 level. The index was trading within a range of 100.17 and 100.30 during the day.

This stability came after the dollar had briefly touched a fresh six-month high on November 21. As gold is priced in the US dollar globally, the continued strength of the US dollar makes gold more expensive for buyers who hold other currencies. Thus, this dampens international demand and puts downward pressure on the price of gold.

Easing Geopolitical Tensions

Geopolitical tensions and trade tensions have eased in November, following a key meeting between the US and Chinese presidents. The two countries have agreed to a partial stand-down on several trade issues. China has restarted purchases of US agricultural products (like soybeans), and both sides have agreed to suspend or reduce some tariffs. The easing of trade tensions can negatively affect the demand for gold as investor sentiment shifts from safe-haven assets to other assets with relatively higher risk.

Temporary Softening of Seasonal Demand

The temporary dip in festive demand for the yellow metal is also expected to have reduced gold prices. Typically, Indian gold demand peaks during festivals like Diwali and Dhanteras. After a period of intense demand, a lull in buying is seen before the wedding season fully picks up.

This seasonal lull in the domestic demand is likely to have added to the drop caused by global cues, as India is one of the world's largest gold buyers. Data from the World Gold Council shows that India recently surpassed China to become the world's largest consumer of gold for jewellery purposes by volume. India’s volume of gold bought for the purpose of making gold jewellery stood at 563.4 tonnes, outpacing China’s demand, which stood at 479.3 tonnes.