Gold prices fall in India as yields rise

The drop comes as global gold-backed funds are retreating from stretched levels. SPDR Gold Shares, which tracks bullion, ended at $398.77 on Friday after rising as high as $490 earlier in the year. Its relative strength index has slid to 33.7, close to oversold territory, while the MACD remains above the signal line but has been narrowing, suggesting momentum has weakened. Adalytica’s Gold Fear & Greed Index shows sentiment at 23, labeled “Fear,” with awareness at “Extreme Fear,” underscoring how quickly the tone has turned from euphoria to caution.

The broader macro backdrop has also shifted. The U.S. 10-year Treasury yield has climbed to 4.95%, raising the opportunity cost of holding non-yielding bullion and supporting the dollar. A firmer dollar typically weighs on gold, particularly when investors are reassessing how far central banks can cut rates and whether safe-haven demand is already fully priced.

For investors, the key question is whether this is a routine pullback in an overbought market or the start of a deeper correction. Bullish buyers can point to the fact that gold remains far above its 200-day moving average in ETF terms and that geopolitical and policy risks have not disappeared. Bears will argue that the combination of higher yields, a steadier dollar and fading momentum leaves gold vulnerable to further liquidation if macro data do not justify easier monetary policy.

Gold miners and bullion-backed funds are likely to move in tandem with the metal, while jewellers, importers and retail consumers stand to benefit from lower prices. If the selloff extends, it could test how durable the year’s safe-haven trade really is; if bargain hunting emerges quickly, Friday’s decline may prove to be a reset rather than a reversal.