Gold Prices Fall Rs 3,400 To Rs 96,550 As US-China Trade Deal Curbs Demand
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PTI
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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, says an expert.
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.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI)
First Published:
May 12, 2025, 17:08 IST
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