Gold rate today: Gold prices fell sharply by Rs 1,000 to Rs 98,400 per 10 grams in the national capital on Monday, weighed by weak global trends, according to the All India Sarafa Association .
The 99.9 per cent pure gold had previously closed at Rs 99,400 per 10 grams on Thursday. Similarly, 99.5 per cent pure gold declined to Rs 97,900 per 10 grams from its previous close of Rs 98,900 per 10 grams. Local bullion markets remained closed on Friday as traders observed a protest against the terror attack in Pahalgam, Jammu and Kashmir.
Chintan Mehta, chief executive officer of Abans Financial Services, said "Gold prices continued to decline as easing US-China trade tensions boosted investors' risk appetite, reducing demand for safe-haven assets like bullion while a stronger dollar added downward pressure on gold," as quoted by news agency PTI.
The decline follows China's announcement on Friday that it would exempt certain US imports from its 125 per cent tariffs, though formal trade negotiations were ruled out. Meanwhile, US Federal Reserve officials indicated no immediate need for monetary policy adjustments, suggesting that interest rate cuts are unlikely in the near term — a development that further dampens gold’s appeal as a non-yielding asset.
However, Mehta pointed out that rising geopolitical tensions could cap gold's downside. "With war risks escalating and fresh conflicts emerging, investors are expected to continue seeking refuge in gold," he said. He cited growing strains between India and Pakistan, among other regional tensions, as factors likely to support safe-haven demand.
Gold prices witnessed high volatility last week, touching a record high of $3,500 per ounce on COMEX before pulling back below $3,300. The initial surge was driven by strong safe-haven demand amid rising geopolitical and economic concerns.
The rally cooled off after US President Donald Trump expressed optimism about possible trade negotiations with China and backed away from moves against Federal Reserve Chair Jerome Powell. Mixed signals from US officials and hopes for tariff cuts also contributed to profit booking in gold.
Adding to the uncertain environment, the IMF downgraded its global growth forecast for 2025 to 2.8 per cent and raised inflation expectations, keeping investors cautious.
This week, markets will closely watch statements from US Fed officials, updates on US-China trade discussions, and key US economic data, including PMI readings and durable goods orders.
Also read: Jewellers unveil offers while investor demand expected to remain strong ahead of Akshaya Tritiya
Silver prices also witnessed a sharp fall, dropping by Rs 1,400 to Rs 98,500 per kilogram on Monday, from the previous close of Rs 99,900 per kilogram.
In global markets, spot gold slipped nearly 1 per cent to $3,291.04 per ounce, weighed down by optimism surrounding a potential China-US trade agreement and signs of progress towards a Russia-Ukraine peace deal.
"Gold traded weak amid growing expectations of multiple tariff settlements and peace talks," said Jateen Trivedi, vice president Research Analyst, Commodity and Currency at LKP Securities.
Spot silver in the Asian market also edged lower by 0.2 per cent to $33.05 per ounce.
Looking ahead, Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, said that traders will closely watch developments related to global tariffs. Key upcoming US economic data — including April manufacturing PMI, GDP figures, non-farm payrolls, and unemployment rates — are expected to further influence bullion prices.
The 99.9 per cent pure gold had previously closed at Rs 99,400 per 10 grams on Thursday. Similarly, 99.5 per cent pure gold declined to Rs 97,900 per 10 grams from its previous close of Rs 98,900 per 10 grams. Local bullion markets remained closed on Friday as traders observed a protest against the terror attack in Pahalgam, Jammu and Kashmir.
Chintan Mehta, chief executive officer of Abans Financial Services, said "Gold prices continued to decline as easing US-China trade tensions boosted investors' risk appetite, reducing demand for safe-haven assets like bullion while a stronger dollar added downward pressure on gold," as quoted by news agency PTI.
The decline follows China's announcement on Friday that it would exempt certain US imports from its 125 per cent tariffs, though formal trade negotiations were ruled out. Meanwhile, US Federal Reserve officials indicated no immediate need for monetary policy adjustments, suggesting that interest rate cuts are unlikely in the near term — a development that further dampens gold’s appeal as a non-yielding asset.
However, Mehta pointed out that rising geopolitical tensions could cap gold's downside. "With war risks escalating and fresh conflicts emerging, investors are expected to continue seeking refuge in gold," he said. He cited growing strains between India and Pakistan, among other regional tensions, as factors likely to support safe-haven demand.
Gold prices witnessed high volatility last week, touching a record high of $3,500 per ounce on COMEX before pulling back below $3,300. The initial surge was driven by strong safe-haven demand amid rising geopolitical and economic concerns.
The rally cooled off after US President Donald Trump expressed optimism about possible trade negotiations with China and backed away from moves against Federal Reserve Chair Jerome Powell. Mixed signals from US officials and hopes for tariff cuts also contributed to profit booking in gold.
Adding to the uncertain environment, the IMF downgraded its global growth forecast for 2025 to 2.8 per cent and raised inflation expectations, keeping investors cautious.
This week, markets will closely watch statements from US Fed officials, updates on US-China trade discussions, and key US economic data, including PMI readings and durable goods orders.
Also read: Jewellers unveil offers while investor demand expected to remain strong ahead of Akshaya Tritiya
Silver prices also witnessed a sharp fall, dropping by Rs 1,400 to Rs 98,500 per kilogram on Monday, from the previous close of Rs 99,900 per kilogram.
In global markets, spot gold slipped nearly 1 per cent to $3,291.04 per ounce, weighed down by optimism surrounding a potential China-US trade agreement and signs of progress towards a Russia-Ukraine peace deal.
"Gold traded weak amid growing expectations of multiple tariff settlements and peace talks," said Jateen Trivedi, vice president Research Analyst, Commodity and Currency at LKP Securities.
Spot silver in the Asian market also edged lower by 0.2 per cent to $33.05 per ounce.
Looking ahead, Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, said that traders will closely watch developments related to global tariffs. Key upcoming US economic data — including April manufacturing PMI, GDP figures, non-farm payrolls, and unemployment rates — are expected to further influence bullion prices.
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