13-05-2025
Gold prices rebound a day after fall
Gold prices rebounded in the spot market on Tuesday, a day after a massive fall of about 3% in the global market due to easing of the tariff war and trade tensions between the U.S. and China, the world's two largest economies.
Analysts said ever since the announcement was made, safe-haven assets such as gold faced sell-off by investors.
However in India, as per Indian Bullion & Jewellers Association (IBJA) rates, gold on the spot market was priced at ₹94,344 per 10 grams on Tuesday compared with ₹93,076 on Monday, a gain of ₹1,268 per 10 grams.
In the past weeks, gold prices have reduced to a large extent from the record-high level of more than ₹1 lakh recorded on April 24, 2025, as investors increasingly preferred the safe-haven asset due to global uncertainties triggered by the tariff action of U.S. President Donald Trump.
Comex gold futures declined about 3% on Monday to settle at $3,329 per ounce (28.3495 grams), the lowest closing in nearly two weeks.
'The sharp decline was driven by a stronger U.S. dollar and reduced safe-haven demand following the announcement of a temporary easing of trade tensions between the United States and China,' Kaynat Chainwala, AVP Commodity Research, Kotak Securities said in a note.
'Additionally, the easing of geopolitical risks further dampened demand for bullion as Ukrainian President Volodymyr Zelensky announced plans for direct talks with Russian President Vladimir Putin in Istanbul. However, the metal rebounded slightly on Tuesday, edging above $3,240 per ounce, as renewed safe-haven demand emerged,' he added.
In a note titled 'Gold bleeds as the U.S.-China lower import tariffs' Augment Enterprise Pvt. Ltd. said gold price may drop to ₹92,000 if it remained below ₹94,000 this week. 'And we are expected to see a $200 decline to $3,000 per ounce (₹86,000 per 10 grams) if prices break and hold below $3200,' it said in the note. The volatility has led to a wait-and-watch approach by gold buyers and investors, while footfalls at jewellery stores have reduced substantially.
