Internationally, spot gold fell 0.4% to $4,051.31 per ounce as of 0353 GMT, extending its three-session decline, even as US gold futures rose 0.8% to $4,047.70 an ounce on mild bargain buying.
Spot silver was flat at $49.98 per ounce, holding near key support levels.
In India, 24-karat gold traded at ₹12,513 per gram, 22-karat at ₹11,470, and 18-karat at ₹9,385, with traders noting that a weaker rupee offered limited support amid global softness.
The dollar index stayed near six-month highs, making dollar-priced bullion more expensive for other currency holders.
“If the index continues to trade above 100, there will be further pressure on gold,” said Jigar Trivedi, senior research analyst at Reliance Securities, who expects a “flattish to negative undertone” over the next few weeks in the absence of new geopolitical triggers.
Rate-cut expectations for December dipped to 69%, down from 74% in the previous session, according to the CME FedWatch Tool, after Fed officials offered mixed cues. While New York Fed President John Williams sounded dovish last week, others, including Dallas Fed President Lorie Logan, argued for keeping policy restrictive for longer.
Even so, some analysts see potential for buying on declines.
Jateen Trivedi, VP Research Analyst – Commodity & Currency at LKP Securities, said gold is still trying to stabilise near $4,100 an ounce.
“With rate-cut bets rising again and geopolitical risks lingering, dips are likely to attract renewed buying interest,” he said, pegging domestic resistance near ₹1.25 lakh per 10 grams and support around ₹1.22 lakh per 10 grams.
Rahul Kalantri, VP Commodities at Mehta Equities, cited key global support at $3,980 an ounce for gold and $48 an ounce for silver, with upside capped as long as the dollar index remains elevated.
–With Reuters inputs