Gold Tumbles ₹1,300 as Stronger Dollar and Higher Inflation Weigh
Gold prices in India plummeted by over ₹1,300 per 10 grams on August 27, 2026, as investors booked profits amid a stronger US dollar. The recent rally had propelled gold to a three-month high, prompting many investors to take advantage of the gains.
The primary driver behind this sell-off is the strengthening US dollar, which climbed to around 99. This shift in sentiment was triggered by the US Personal Consumption Expenditures (PCE) inflation data for July 2026, which arrived at 3.7%. This figure was slightly higher than what the market had anticipated.
As a non-yielding asset, gold often becomes less attractive to investors when US interest rates are expected to stay higher for longer to combat inflation. The current high price levels have also tempered retail demand for gold jewelry in India ahead of the Rakshabandhan festival.
The market is now focused on the upcoming Jackson Hole symposium, where Federal Reserve Chair Kevin Warsh will provide policy guidance on the future interest-rate trajectory. Investors and traders are eagerly awaiting his commentary, which will be a critical factor for the global bullion market.