Gold prices fell by 0.09 percent on Thursday at the domestic markets after India unexpectedly cut its benchmark interest rate. India’s central bank lowered its interest rate 0.25 per cent to 7.5 percent, marking its second rate cut in months. A lower interest-rate is often regarded as a positive sign for gold, as it decreases the price of holding onto the precious metal. Further, a strong dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand.