Gold Prices See Major Dip Amidst Rising Trade Tensions

Gold prices have significantly dropped to Rs 90,200 per 10 grams in the national capital due to reduced demand by stockists and retailers. Despite uncertainty from global trade tensions and fluctuating US dollar, silver prices saw an upward trend. Investors are closely observing evolving trade policies and their economic effects.

In a significant development, gold prices plummeted by Rs 1,050, settling at Rs 90,200 per 10 grams in Delhi, stemming from low demand among stockists and retailers, as reported by the All India Sarafa Association.

The decline in gold prices comes as global trade tensions intensify with the escalating US-China tariff battle, prompting a spike in demand for safe-haven commodities. Interestingly, while gold took a hit locally, its value in the overseas market increased, reaching USD 3,044.14 per ounce.

Conversely, silver exhibited a positive trend, gaining Rs 500 to hit Rs 93,200 per kg. Analysts, including Saumil Gandhi from HDFC Securities, note that the ongoing tariffs impacting US-China relations could further influence the precious metals market in the coming days. Market participants are also eyeing the upcoming US Federal Open Market Committee meeting and inflation data for further insights.

(With inputs from agencies.)