Gold tumbles below ₹1.5 lakh per 10g in Delhi after two months

Gold prices in Delhi slipped below the psychologically significant ₹1.5 lakh per 10-gram level on Thursday, marking the first time the precious metal has breached this threshold in approximately two months. The sharp decline of ₹1,400 per 10g underscores growing headwinds facing the domestic bullion market.

The pullback reflects a combination of softening local demand and international headwinds, particularly a stronger US dollar. A firmer greenback typically makes gold more expensive for buyers using other currencies, dampening global purchasing interest and exerting downward pressure on international spot prices.

Domestic demand for gold has been tepid in recent weeks, with fewer retail purchases translating into lower volumes in the Indian market. This weakness in local appetite has left gold vulnerable to external price pressures, allowing the currency strength and international trends to dictate local valuations.

Analysts note that the break below ₹1.5 lakh may signal further consolidation ahead unless demand conditions improve or the dollar weakens materially. The movement underscores gold's sensitivity to the interplay between local consumption patterns and global macroeconomic factors.