NEW DELHI: Gold prices in the national capital dropped sharply by Rs 1,000 to Rs 1,01,520 per 10 grams on Tuesday, following a sell-off in global markets, as reported by the All India Sarafa Association.
On Monday, gold of 99.9% purity had closed at Rs 1,02,520 per 10 grams.
In local markets, 99.5% pure gold also fell by Rs 1,000 to Rs 1,01,100 per 10 grams (including all taxes) on Tuesday.
Abans Financial Services CEO Chintan Mehta explained that gold prices fell after US President Donald Trump’s social media statement indicating that there would be no tariffs on gold imports. While official confirmation from the White House is still awaited, the announcement helped ease some trade-related concerns.
Further easing pressure on gold prices, the White House on Monday extended the suspension of high-level tariffs on China until November 11, reducing ongoing macroeconomic tensions, Mehta added.
On Tuesday morning, the Indian rupee strengthened by 10 paise to 87.65 against the US dollar.
Silver prices also took a hit, dropping Rs 2,000 to Rs 1,12,000 per kilogram (inclusive of taxes) on Tuesday, compared to Rs 1,14,000 per kg on Monday.
Globally, spot gold was trading at USD 3,347.18 per ounce, up 0.13% in New York. Renisha Chainani, Head of Research at Augmont, noted that Trump’s announcement easing fears of tariffs helped push gold prices below USD 3,400 per ounce.
Spot silver gained nearly 1%, trading at USD 37.90 per ounce internationally.
Chainani added that investors remain focused on upcoming US economic data—including the Consumer Price Index, Producer Price Index, and retail sales—which will offer insights into the Federal Reserve’s interest rate policy.
Commodity market experts highlighted that speeches by US Federal Reserve officials will significantly influence the near-term US dollar trends and provide direction for bullion prices.
Demand for gold, traditionally a safe-haven asset, was also dampened by speculation that the upcoming meeting between Trump and Russian President Vladimir Putin might reveal a peace plan for the Russia-Ukraine conflict.
