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Stronger Dollar Leaves Gold Hovering Near $4,000

SBI Research urges a long-term Indian policy after soaring prices strained SGB finances.

Overview

  • Spot bullion traded around $3,940–$3,970 following Tuesday’s near 2% drop, with the dollar at three-month highs and December Fed cut odds pared to roughly 69–71% on CME FedWatch.
  • Fed officials voiced caution on additional easing after last week’s cut, and traders are watching ADP jobs and ISM reports during a broader US data delay.
  • China lowered the VAT exemption on gold bought via the Shanghai exchanges to 6% from 13% effective November 1, a change expected to cool retail demand.
  • Pakistan’s market mirrored global weakness, with APGJSA citing a Rs3,500 per tola fall to Rs420,362 on Tuesday and a further Rs1,000 decline on Wednesday.
  • SBI Research reported a 50% plus year-to-date surge in 2025, noted India’s 2024 demand at 802.8 tonnes with 86% import reliance, highlighted RBI holdings near 880 tonnes, and estimated a Rs 93,284 crore capital loss on outstanding Sovereign Gold Bonds.