7% on Tuesday after robust US non‑farm payroll numbers revived expectations of another Federal Reserve rate hike. 2% as investors adopted a cautious stance. Higher US rates increase the opportunity cost of holding non‑yielding assets like gold, prompting a sell‑off.
For salaried Indians who traditionally hold gold as an inflation hedge, the dip signals a need to revisit portfolio weightings, especially as a stronger dollar adds pressure on the rupee. Geopolitical tensions in the Middle East and persistently high oil prices, however, provide a floor for the metal. Technical analysts highlight around ₹66,000 per 10 g as a near‑term support level and ₹68,500 as resistance, offering reference points for short‑term traders.
The upcoming US CPI and core inflation releases will likely steer the next leg of both rate expectations and gold prices. Indian investors should keep an eye on these data points and consider diversifying into interest‑bearing instruments or equity exposure if gold’s downside appears pronounced. Maintaining a balanced portfolio that matches personal risk tolerance remains the prudent approach.