Meanwhile, gold futures prices on MCX for December 5, 2024 fell slightly by 0.04%. ₹30 to ₹78,536.

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In particular, the recent decline in Gold prices can be attributed to the strengthening US dollar (currently ₹It rose to 84.0725 per dollar as investors closely monitor U.S. macroeconomic data, including inflation and GDP reports, to gauge potential rate cuts by the Federal Reserve.

Dhanteras

The slight short-term decline in gold prices occurred just ahead of Dhanteras day. Historically, gold prices around the time of Dhanteras and Diwali have increased by almost 30% since last year.

Jewelers and retailers in India expect demand to remain muted and volumes to fall this Dhanteras despite the low customs duty, as the price of the yellow metal reaches record highs ahead of Diwali festivities.

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In fact, gold has outperformed domestic equities; The benchmark BSE Sensex has risen only 10.79% this year, making it a compelling investment option amid market volatility.

Global stock index

Global stock indexes rose on Monday as investors awaited this week’s earnings reports from the largest US tech-related companies, while oil prices fell 6% after Israel’s retaliatory strike against Iran over the weekend bypassed oil and nuclear facilities.

After the election in Japan dragged the country into political turmoil, the Japanese yen fell to its lowest level in three months against the dollar.

Earnings season is in full swing in the US, and a long list to be revealed in the report this week includes the five largest companies in the US: Google parent Alphabet, Microsoft, Facebook owner Meta Platforms, Apple and Amazon.com.

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