Gold prices logged their third straight weekly loss, pressured by a firmer US dollar and fading expectations of a further Federal Reserve rate cut this year. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold (10g) closed the week at ₹1,20,100, down ₹670 from ₹1,20,770 a week earlier.
International bullion hovered near $4,000, weighed down after Fed Chair Jerome Powell&rsquo;s hawkish tone, even though the US central bank delivered its second 25-basis-point cut of the year. Market odds of another cut in December dropped sharply from nearly 90% to about 60%, denting bullion sentiment as the dollar index stayed firm near 100 and the USD/INR approached 89.
Analysts said the record US government shutdown has stalled official data releases, pushing investors to rely on private indicators. With both ISM manufacturing and services PMIs slipping below 50 and private payrolls rising modestly by 42,000, the Fed&rsquo;s path ahead appears increasingly uncertain.&nbsp;Adding to the pressure, safe-haven demand cooled as US&ndash;China tensions eased after Presidents Donald Trump and Xi Jinping agreed to tariff reductions in exchange for Beijing&rsquo;s curbs on fentanyl, renewed soybean purchases and continuation of rare-earth exports.
In a significant move affecting physical demand, China scrapped a key VAT offset for gold retailers buying through the Shanghai Gold Exchange and cut tax exemptions from 13% to 6%. &ldquo;This prompted banks to halt new retail gold accounts and could cool physical consumption in the world&rsquo;s top gold market,&rdquo; statement from&nbsp;Motilal Oswal Financial Services.
Modi added that the Fed&rsquo;s liquidity support of $29.4 billion and the year-end conclusion of quantitative tightening underline persistent funding pressure.&nbsp;However, a long-term boost may be emerging, with the US adding uranium, copper and silver to its critical minerals list, potentially strengthening demand for precious and industrial metals alike.

Gold Extends Weekly Slide as Fed Hopes Fade

Strong dollar, waning rate-cut bets and China’s tax shift push bullion to a third weekly

Gold Extends Weekly Slide as Fed Hopes Fade

Strong dollar, waning rate-cut bets and China’s tax shift push bullion to a third weekly

November 8, 2025 | 16:08 IST