Gold falls by ₹300 to ₹1,25,300/10g as firm dollar, trade optimism curb safe-haven demand

Gold prices fell by ₹300 to ₹1,25,300 per 10 grams in the national capital on Monday as a stronger dollar and easing global uncertainties weighed on investor appetite for the safe-haven asset.

The precious metal of 99.5% purity declined by ₹300 to ₹1,24,700 per 10 grams (inclusive of all taxes). It had closed at ₹1,25,000 per 10 grams on Friday, according to the All India Sarafa Association. Gold of 99.9% purity had settled at ₹1,25,600 per 10 grams on Friday.

On the other hand, silver rallied by ₹1,000 to ₹1,54,000 per kilogram (inclusive of all taxes) from Friday's closing of ₹1,53,000 per kg.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09% to 99.89, weighed on bullion prices.

In international markets, spot gold slipped below USD 4,000, declining 0.14% to USD 3,996.77 per ounce, while spot silver was marginally lower at USD 48.64 per ounce.

Meanwhile, China removed a long-standing tax incentive on gold sales, a move that could raise consumer prices and weaken demand in one of the world's largest bullion markets.

The data releases will provide more cues on the monetary policy.