Gold tanks Rs 3,400 to Rs 96,550/10 g as US-China trade deal curbs demand
Gold prices tanked sharply by Rs 3,400 to Rs 96,550 per 10 grams in the national capital on Monday as traders shifted from safe-haven buying after the US declared a 90-day pause on tariff against Chinese imports.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Gold prices tanked sharply by Rs 3,400 to Rs 96,550 per 10 grams in the national capital on Monday as traders shifted from safe-haven buying after the US declared a 90-day pause on tariff against Chinese imports. According to the All India Sarafa Association, the precious metal of 99.5 per cent purity plunged Rs 3,400 to Rs 96,100 per 10 grams on Monday. This marks the steepest fall in 10 months since gold prices plunged Rs 3,350 on July 23, 2024.Gold of 99.9 and 99.5 per cent purity had settled at Rs 99,950 and Rs 99,500 per 10 grams on Saturday."Gold prices fell sharply amid signs of progress in trade talks between the US and China, along with some relief in geopolitical tensions, including India-Pakistan," Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said.Also, silver prices fell Rs 200 to Rs 99,700 per kg from Saturday's close of Rs 99,900 per kg.Following the trade talks in Geneva over the weekend, the US agreed to drop its 145 per cent tariff rate on Chinese goods to 30 per cent, while China agreed to lower its rate on US goods to 10 per cent for a 90-day period.Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, is trading higher by 1.42 per cent at 101.76.In futures trades, the most traded contract for gold plummeted Rs 3,932 or 4.07 per cent to trade at Rs 92,586 per 10 grams on the Multi Commodity Exchange (MCX).According to Jateen Trivedi, VP Research Analyst - Commodity and Currency , LKP Securities, geopolitical tensions cooled with signs of a potential truce between Russia and Ukraine, and an understanding between India and Pakistan on military actions.These developments led to heavy profit booking in gold, which had previously rallied on global uncertainty, Trivedi said.A strong rally in stock markets also hit the gold's appeal as a safe-haven bet.Silver contracts for July delivery slumped Rs 2,295 or 2.37 per cent to Rs 94,434 per kg on the MCX.Spot gold tanked over 3 per cent to trade at USD 3,218.70 per ounce in the global markets.Spot silver in the international markets fell 1.19 per cent to trade at USD 32.33 per ounce."Gold dips more than 2 per cent on long-liquidation/ profit-booking amid easing geo-political tensions and recovery in the greenback against major currencies," Pranav Mer, Vice President, EBG - Commodity & Currency Research at JM Financial Services Ltd, said.Later in the week, investors will focus on the US macroeconomic data, including inflation/ retail sales and consumer sentiments. They will also await US Fed Chair Jerome Powell's speech - for more clues on the central bank interest rate path, Mer added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
38 minutes ago
- Time of India
Deal to get US-China trade truce back on track is done, says Trump
President Donald Trump on Wednesday said he was very happy with a trade deal that restored a fragile truce in the US -China trade war, a day after negotiators from Washington and Beijing agreed on a framework covering tariff rates. The deal also removes Chinese export restrictions on rare earths minerals and allows Chinese students access to US universities. "We made a great deal with China. We're very happy with it," Trump told reporters before a performance at Washington's Kennedy Center on Wednesday evening. "We have everything we need, and we're going to do very well with it. And hopefully they are too." Earlier, Trump used his social media platform to offer some of the first details to emerge from two days of marathon talks in London that had, in the words of US Commerce Secretary Howard Lutnick, put "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. "Our deal with China is done, subject to final approval with President Xi and me," Trump said on Truth Social. "Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55per cent tariffs, China is getting 10per cent ." A White House official said the 55per cent represents the sum of a baseline 10per cent "reciprocal" tariff Trump has imposed on goods imported from nearly all US trading partners; 20per cent on all Chinese imports because of punitive measures Trump has imposed on China, Mexico and Canada, associated with his accusation that the three facilitate the flow of the opioid fentanyl into the US ; and pre-existing 25per cent levies on imports from China that were put in place during Trump's first term in the White House. Lutnick said the 55per cent rate on Chinese imports is fixed and unalterable. Asked on Wednesday on CNBC if the tariff levels on China would not change, he said: "You can definitely say that." Still, many specifics of the deal and details on how it will be implemented remain unclear. Treasury Secretary Scott Bessent told lawmakers that the deal would not reduce US export restrictions on high-end artificial intelligence chips in return for access to Chinese rare earths. "There is no quid pro quo in terms of chips for rare earths," Bessent told a US Senate Appropriations subcommittee hearing. China's commerce ministry did not immediately reply to a request for comment and more information. Framework for a deal Officials from the two superpowers had gathered at a rushed meeting in London starting on Monday. The meeting followed a call last week between Trump and Chinese leader Xi Jinping that broke a standoff that flared just weeks after the preliminary deal reached in Geneva. The Geneva deal had faltered over China's continued curbs on critical minerals exports, prompting the Trump administration to respond with export controls preventing shipments of semiconductor design software, jet engines for Chinese-made planes and other goods to China. Lutnick said the agreement reached in London would remove restrictions on Chinese exports of rare earths minerals and magnets and some of the recent US export restrictions "in a balanced way," but did not provide details after the talks concluded around midnight London time (7 p.m. EDT). "We have reached a framework to implement the Geneva consensus and the call between the two presidents," Lutnick said. Both sides will now return to present the framework to their respective presidents for approvals, he added. "And if that is approved, we will then implement the framework," he said. In a separate briefing, China's vice commerce minister, Li Chenggang, also said a trade framework had been reached in principle that would be taken back to US and Chinese leaders. 'Back to square one' Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. US stocks drifted lower on Wednesday but have recouped most of the losses suffered earlier in the spring during Trump's wave of tariff announcements. "It's a done deal, according to President Trump, but we haven't seen any details, which is why I think the market is not reacting to it yet. As with just about everything, the devil is in the details," said Oliver Pursche, senior vice president and adviser at Wealthspire Advisors in Westport, Connecticut. The World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3per cent , saying higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. The US -China deal may keep the Geneva agreement from unravelling over duelling export controls, but does little to resolve deep differences over Trump's unilateral tariffs and longstanding US complaints about China's state-led, export-driven economic model. "If China will course correct by upholding its end of the initial trade agreement we outlined in Geneva - and I believe after our talks in London, they will - then the rebalancing of the world' largest economies is possible," Bessent told a separate House of Representatives hearing hours after returning from the London talks. The two sides left Geneva with fundamentally different views of the terms of that agreement and needed to be more specific on required actions, said Josh Lipsky , senior director of the Atlantic Council's GeoEconomics Center in Washington. "They are back to square one, but that's much better than square zero," Lipsky said. It was not immediately clear from Trump's comments where things stood regarding the timeline for a more comprehensive deal that was reached last month in Geneva, a deadline set at that time for August 10. William James in London, and Sachin Ravikumar; Ethan Wang, Shi Bu, Yuhan Lin and Alessandro Diviggiano in Beijing, Caroline Valetkevitch in New York; Writing by David Lawder, Kate Holton and Liz Lee; Editing by Lincoln Feast, Paul Simao, Jamie Freed and Leslie Adler)
Economic Times
an hour ago
- Economic Times
Monolithisch India IPO opens today: Key details investors should know
The IPO is being offered in a price band of Rs 135 to Rs 143 per share. Retail investors can apply for a minimum lot size of 1,000 shares, requiring an investment of Rs 1.43 lakh at the upper end of the price band. Monolithisch India's SME IPO is now open for subscription, aiming to raise Rs 82.02 crore. The IPO will remain open until June 16. Shares will be listed on NSE SME with tentative listing date of June 19, 2025. The company plans to use the funds for expansion and working capital. Tired of too many ads? Remove Ads Monolithisch India's SME IPO will open for subscription today and will remain open until June 16. The SME IPO aims to raise Rs 82.02 crore through a fresh issue of 54.48 lakh equity shares. The shares will be listed on the NSE SME platform, with a tentative listing date set for June 19, IPO is being offered in a price band of Rs 135 to Rs 143 per share. Retail investors can apply for a minimum lot size of 1,000 shares, requiring an investment of Rs 1.43 lakh at the upper end of the price Securities is the book-running lead manager, and Kfin Technologies is the registrar for the India, incorporated in August 2018, specializes in manufacturing and supplying 'ramming mass,' a key heat insulation material used in iron and steel induction company has expanded its client base from 43 in 2023 to 61 in 2025, underscoring its growing market presence. It posted strong financial performance for FY25, with revenue rising 41% to Rs 97.49 crore and net profit increasing 70% to Rs 14.49 crore compared to the previous IPO proceeds will be used to fund capital expenditure for a new manufacturing facility, invest in its subsidiary Metalurgica India Private Limited, meet working capital requirements, and cover general corporate expenses.
Mint
an hour ago
- Mint
Australian shares flat as mining losses counter banks, energy boost
June 12 (Reuters) - Australian shares were largely unchanged on Thursday, as miners partially offset strong performances in banks and energy stocks, while U.S. President Donald Trump's hint at extending the trade negotiation deadline eased concerns over imminent tariff hikes. The S&P/ASX 200 index held its ground at 8,593 points, as of 0108 GMT. The benchmark on Wednesday touched a record-closing high of 8,592.1 points. Overnight, Trump signalled openness to extending the July 8 deadline for trade talks before higher U.S. tariffs take effect, though he expressed doubt that an extension would be necessary. China and the United States, Australia's top export partners, reached a framework deal, boosting investor optimism for a lasting resolution between the two superpowers and easing fears of further market disruption. However, the lack of specific terms leaves the possibility of future tariff disputes. Chinese export-reliant miners slipped 0.4%, set for their weakest session since June 2, if current momentum holds. Mining heavyweights BHP, Rio Tinto and Fortescue dropped between 0.9% and 2.4%. Bucking the sombre trend, energy firms climbed 1.4% after oil prices hit a two-month high. The sub-index is on track for its fourth consecutive session of gains. Index majors Woodside and Santos advanced 1.5% and 0.8%, respectively. Financials rose 0.2%, with the "Big Four" banks climbing between 0.1% and 0.4%. Gold stocks tracked bullion prices higher, climbing nearly 2%. Shares of metals miner Northern Star Resources gained about 1%. Among corporate news, Qantas emerged as one of the top performers in the benchmark index, up 4.3%, a day after the carrier announced the closure of Singapore-based budget airline Jetstar Asia due to rising costs and competition. In other news, the Australian defence minister expressed confidence in the AUKUS submarine pact, despite the Trump administration launching a formal review of the agreement. New Zealand's benchmark S&P/NZX 50 index edged 0.1% lower to 12,592.86 points. (Reporting by Kumar Tanishk and Sneha Kumar in Bengaluru; Editing by Sherry Jacob-Phillips)
