RBI actions strengthen rupee, gold slips to ₹149,671 on MCX
Gold prices in India dropped 1.21% on Monday (October 12), landing at ₹149,671 per 10gm on the MCX.
The main reason? The Indian rupee just got a boost thanks to some recent moves by the Reserve Bank of India, making gold more affordable here compared to global rates.
Rupee strength drives domestic gold fall
Since the rupee is stronger, domestic gold prices have fallen faster than international ones, while global gold dipped only about 0.5%.
As Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, put it, currency swings are hitting local gold harder than what we're seeing worldwide.
All eyes are now on upcoming US inflation data (CPI), which could shake up interest rates and where gold heads next, so expect prices to hover between ₹148,000 and ₹152,000 for now.