Gold Prices Fall as Stronger Dollar Weighs on Bullion

Gold prices in India fell on Monday due to the stronger US dollar following Friday's employment data release. The 24-karat gold rate dropped to ₹15,480 per gram, a decline of ₹972 from the previous day. This move occurred despite the long-term structural case for gold remaining intact, with central banks globally continuing net purchases in the second quarter.

The World Gold Council reported that global demand has sustained bullion's elevated price relative to historical averages. However, Indian consumer demand held firm through August, driven by steady wedding-season purchases and pre-Navratri inventory builds in southern India.

Analysts at Goldman Sachs had flagged the risk of a payrolls print above consensus capping bullion's momentum. The stronger dollar made gold more expensive for foreign buyers, exacerbating the decline. Silver prices also mirrored gold's direction, falling to ₹2,37,170 per kilogram.