Why are gold prices falling and will the decline continue?

International and Indian gold prices have experienced a significant decline following record highs earlier in the year. International rates have dropped 26% from a peak of $5,595 recorded on January 29, while Indian prices peaked during the same period and have fallen by approximately 23%.

Further downward pressure occurred more recently after gold futures on the Multi Commodity Exchange (MCX) reached Rs 1,64,773 per 10 grams during the final week of August. Following that late-August peak, prices fell by more than 10%, raising questions among market observers regarding the trajectory of the precious metal and whether the downward trend will persist.