Gold prices have erased all year-to-date gains, briefly dipping below the $4,000 per ounce threshold in a sharp reversal of earlier momentum.
The decline marks a significant psychological break for the precious metal, which had been a standout performer earlier in the year.
Traders on the Multi Commodity Exchange (MCX) booked profits aggressively, contributing to a nearly 1% drop in local trading sessions.
The sell-off was broad-based, with alternative precious metals also facing pressure as investors rotated out of safe-haven assets.
The move comes as the U.S. dollar strengthened, driven by growing market expectations that the Federal Reserve will maintain a cautious stance on interest rates.
Traders on the Multi Commodity Exchange (MCX) booked profits aggressively, contributing to a nearly 1% drop in local trading sessions.
The correlation between the dollar's rise and gold's fall underscores the sensitivity of the metal to macroeconomic shifts and currency dynamics.