Gold Prices Plummet to Five-Week Low Amid Global Economic Uncertainty

Gold prices plummeted in India's capital city Delhi on Tuesday, dropping to a five-week low of Rs 1.54 lakh per 10 grams amid weak global trends and a strong US dollar.

The precious metal previously traded at these levels on August 7, when it stood at Rs 1.54 lakh per 10 grams in the local market.

According to senior commodities analyst Saumil Gandhi of HDFC Securities, gold edged lower due to weak global cues, with spot gold slipping below $4,300 an ounce and trading near a one-month low.

The decline was driven by a stronger dollar and rising treasury yields as elevated crude oil prices heightened inflation concerns and reinforced expectations of a Federal Reserve rate hike at this week's policy meeting, Gandhi added.