Source : INDIA TODAY NEWS
Gold prices in India had touched Rs 1 lakh per 10 grams last week, but the rally seems to be losing strength. Over the past few days, gold has seen a steady fall. The price of gold in India dropped to Rs 95,560 per 10 grams, down 0.8%, according to the Indian Bullion Association on Tuesday.
Globally, gold prices also dropped nearly 1%. Spot gold was down 0.8% at $3,314.99 an ounce, while US gold futures lost 0.7% to $3,325.10. Analysts say that the drop in gold prices is mainly due to easing trade tensions and better risk sentiment in global markets.
WHY GOLD PRICES ARE GOING DOWN
One of the main reasons for the drop in gold prices is the improvement in global trade conditions.
US Treasury Secretary Scott Bessent recently said that many top trading partners, including India, have made strong proposals to avoid US tariffs. He also said a trade deal with India could be signed soon.
In addition, China’s decision to exempt some US goods from its tariffs is seen as a step toward reducing tensions. The US government has also signalled that it will lower the impact of auto tariffs, further improving trade relations.
“The easing came amid the US opening tariff talks with multiple nations and growing expectations of a possible China-US trade agreement according to US Pres Donald Trump. Additionally, optimism around a potential Russia-Ukraine peace deal further weighed on safe-haven demand for gold,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
When trade tensions reduce, investors tend to move away from safe-haven assets like gold. This lowers demand and leads to a fall in prices. Experts say gold prices had earlier surged to an all-time high of $3,500.05 per ounce due to fears of a global slowdown and uncertainty in world markets.
However, with signs of improvement, investors are now looking at other assets for better returns. This has pulled down gold prices both in global and Indian markets.
GOLD MARKET OUTLOOK
Rahul Kalantri, Vice President of Commodities at Mehta Equities, said that the early part of Monday saw a fall in gold due to lower demand in China. But prices later recovered slightly due to risk aversion and some profit-taking in the US dollar.
He also pointed out that recent tension between India and Pakistan and attacks in Iran had increased global risk levels, which pushed gold prices up temporarily. But that rise was not sustained.
According to Kalantri, gold now has support at $3,310–$3,288 and resistance at $3,360–$3,378. In Indian rupee terms, the support level is at Rs 95,450–Rs 95,080 and resistance at Rs 96,750–Rs 97,290. Silver prices are also under pressure, with support at Rs 95,680–Rs 94,850 and resistance at Rs 97,150–Rs 97,950.
Dr. Renisha Chainani, Head of Research at Augmont, said that gold prices could rise again if a new trigger comes up. If prices go above $3,380 (around Rs 96,400), they could move towards $3,435 (around Rs 97,400) and even reach $3,500 (around Rs 99,400), she added.
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(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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SOURCE :- TIMES OF INDIA
