Gold prices retrace from record high ahead of Trump-Putin meeting. Is it the right time to buy gold?
MCX gold rate declined ₹ 1,295, or 1.27%, to an intraday low of ₹ 1,00,503 per 10 grams, while MCX silver futures dropped 1.59% to ₹ 1,13,047 per kg.
Last week, MCX gold price had surged to a record ₹ 1,02,250 per 10 grams, supported by a depreciating rupee and heightened global macroeconomic risks, which boosted its appeal as a safe-haven asset.
The latest pullback comes amid optimism over a potential resolution to the Russia–Ukraine conflict, following the announcement of a meeting between US President Donald Trump and Russian President Vladimir Putin on August 15 in Alaska to discuss ending the war.
'Elevated geopolitical tensions, looming US tariffs, and expectations of US Federal Reserve rate cuts have been driving gold demand. Safe-haven buying has remained resilient, even as domestic jewelry demand weakens,' said Jigar Trivedi, Senior Research Analyst, Reliance Securities.
However, analysts now believe several of the factors underpinning this year's gold rally may have peaked, increasing the likelihood of a correction.
Ajay Kedia, Director, Kedia Advisory, noted that the triggers for gold price rally are starting to fade.
'The announcement of the Trump–Putin meeting has eased geopolitical concerns over the Ukraine war. Expectations of a pause in US rate cuts next year, a stabilising dollar index, and slower central bank buying all point to potential weakness in gold prices ahead,' he said.
According to Kedia, gold is already in a technically overbought zone. 'Gold prices have been facing resistance at the $3,500 level. On MCX, gold prices could correct to ₹ 96,500 – ₹ 97,600 in the short term, with support at ₹ 97,600 and resistance at ₹ 1,03,500,' he added.
Trivedi also warned that record-high prices could dampen short-term physical demand in jewelry and retail segments.
'Current levels present an opportunity to partially book profits. MCX gold price for October futures could drop to ₹ 96,000 – ₹ 92,000 per 10 grams over the next two to three months, while resistance is seen at ₹ 1,06,000,' he said.
With geopolitical risk premiums easing and key bullish drivers losing momentum, analysts suggest that investors consider partial profit booking in gold at current elevated levels, while keeping a close watch on global developments and technical indicators.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
16 minutes ago
- India.com
Is It Worth Bearing Heavy Tariffs For Cheaper Russian Oil; Has India Made A Dangerous Bargain?
New Delhi: Nobel Prize-winning economist Abhijit Banerjee has urged India to reflect on the cost of cheaper Russian oil. He questioned whether paying high U.S. tariffs is worth the savings. His comments came days after U.S. President Donald Trump announced a 25% extra tariff on Indian goods. The action targets India's continued large-scale purchases of discounted Russian crude. With the imposition of new tariff, Indian products entering the U.S. market will now face a total duty of 50%. This marks one of the highest rates imposed by Trump on any country. The additional tariff takes effect on August 27. The long-discussed India-US trade deal remains stalled. Washington seeks greater access to India's farm and dairy sectors, while New Delhi has held back on concessions. The impact could be severe. About $27 billion worth of Indian exports without special trade exemptions may lose competitiveness in the United States. Speaking to news agency PTI on the sidelines of an event at BML Munjal University, Banerjee said the government should weigh options carefully. He suggested exploring whether the United States would remove tariffs if India halted Russian oil imports. India remains the largest global buyer of Russian crude. In July, refiners purchased 1.6 million barrels per day. For August and September, no new orders have been placed. Black Sea oil now offers a discount of only about $2 per barrel. In 2024-25, India imported 88 million tonnes of Russian oil. This formed a large share of the 245 million tonnes of total crude imports. Oil contracts for August and September were finalised before Trump's tariff announcement on August 7. Banerjee emphasised that at a 25% tariff, some Indian exports had already lost their price advantage. Raising it to 50% may not change much for those products. He added that policy circles are already discussing a cut in Russian crude purchases. On the economy, he described the current year's outlook as weaker than expected. He cited low private investment and pressure on the middle class. He pointed to hiring freezes in major firms such as the Tata Consultancy Service (TCS) and stagnant wages in the information technology (IT) sector. These issues, he said, remain unresolved. India's seafood sector is already feeling the strain. The Seafood Exporters Association of India (SEAI) has urged the commerce and finance ministries for urgent relief. It says nearly $2 billion in shrimp exports face serious obstacles in the U.S. market due to Trump's tariff. The SEAI seeks a 30% increase in working capital through soft loans, with interest subsidies and a 240-day moratorium on loans for pre- and post-packing operations. SEAI Secretary-General K.N. Raghavan told PTI the shrimp industry is under heavy stress and needs immediate government intervention.
Economic Times
16 minutes ago
- Economic Times
Tariffs to make exporting to US unviable for India Inc: Crisil Ratings
Representative Image Imposition of the additional 25 per cent tariffs on Indian goods because of the country's purchase of Russian oil will make it "unviable" for India Inc to export to the US, a report said on Tuesday. In a credit alert, domestic rating agency Crisil said earnings of companies in sectors such as diamond polishing, shrimp, home textiles, and carpets are at the risk of getting impacted. It also said all eyes will now be on the bilateral trade agreement and what both countries achieve as a part of that. "Additional 25 per cent tariff to make exports to US unviable for India Inc," the rating agency said, adding that other sectors, including ready-made garments (RMG), chemicals, agrochemicals, capital goods, and solar panel manufacturing, which have sizable trade exposure to the US, also stand getting impacted. The extent of impact will vary depending on exposure, ability to pass on incremental costs to customers, and relative tariff disadvantage versus competing nations, it added. A potential second-order impact, including a slowdown in US demand and disparate tariffs across nations that could alter trade dynamics globally, also warrants close monitoring, along with any bilateral treaty between India and the US, it said. The credit impact on the sectors can be mitigated courtesy strong corporate balance sheets, potential bilateral trade agreements with other countries and the possibility of support from the Indian government. In FY25, the US accounted for a fifth of India's merchandise exports and 2 per cent of the overall GDP in the country, it said. Diamond polishing, shrimp and home textiles may see sales volume decline due to high reliance on US trade and a rise in costs due to partial absorption of tariffs, ultimately affecting their earnings, the agency said. The US accounts for a fourth of diamond polishers' revenues, it said, adding that tariffs aggravate it because the demand for natural diamonds was already tepid. In the case of shrimp exporters, the US accounts for nearly half of revenue and India is now the highest taxed country exporting the commodity to the US, it said, adding that it will be a challenge to compete with Ecuador enjoying lower tariffs. All the other sectors have a high reliance on the US for its topline and will be facing varying impacts, the agency said, stating that it will continue to closely monitor the situation and evaluate the impact on the credit risk profiles of its rated companies.
News18
26 minutes ago
- News18
UP govt leases land for Hyderabads varsity campus in Lucknow at Re 1 per year
Lucknow, Aug 12 (PTI) The Uttar Pradesh government has transferred 2.32 hectares of land for the construction of a permanent campus of the English and Foreign Languages University, Hyderabad to promote quality education in English and foreign languages. The land is located in Chakauli village of Pargana Bijnor in the Sarojini Nagar tehsil of Lucknow district on lease at the rate of Re 1 per year, an official statement issued here said. At the permanent campus in Lucknow, the central university will run regular programmes like BA (Honours) English, MA English, MA Linguistics, MA English Literature, Post Graduate Diploma in the Teaching of English (PGDTE) and PhD along with part-time courses in French, German, Russian and Spanish languages. At present, the university is temporarily operating from a complex at Kanpur Road in Lucknow. At the land transfer ceremony on Tuesday, Higher Education Minister Yogendra Upadhyay, who was also the chief guest, said that the state government is committed to providing the youth of the state with linguistic education of global standards. He expressed confidence that the construction of the permanent campus will lead to unprecedented growth in the quality of education and facilities. The university's Vice Chancellor, Prof N Nagaraju, expressed gratitude towards the state government, saying that this land transfer is a historic step for the long-term development of the institution and that the Lucknow Campus will be developed into an excellent centre for linguistic education and research. PTI COR ABN ABN KSS KSS view comments First Published: August 12, 2025, 23:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
