Gold and Silver Prices Fall After Trade Tensions Ease”: SRINAGAR: Gold prices fell sharply by Rs 1,000 to Rs 98,400 per 10 grams in the national capital on Monday, amid a weak global trend and optimism surrounding a possible US-China trade agreement, according to media reports citing the All India Sarafa Association.
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The precious metal of 99.9 per cent purity had previously closed at Rs 99,400 per 10 grams on Thursday, while gold of 99.5 per cent purity also declined by Rs 1,000 to Rs 97,900 per 10 grams, down from Rs 98,900.
The decline in prices is attributed to easing tensions between Washington and Beijing, boosting investors’ risk appetite and reducing demand for safe-haven assets like bullion, as per media reports. A strengthening dollar further exerted downward pressure on gold prices.
“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,” said Chintan Mehta, Chief Executive Officer of Abans Financial Services, as quoted in media reports.
On Friday, China announced exemptions on certain US imports from its steep 125 per cent tariffs, although it denied that formal trade talks had resumed, according to media reports. Meanwhile, US Federal Reserve officials indicated that they see no immediate need to adjust monetary policy, suggesting that interest rate cuts may not materialise in the near future, which further weighed on gold.
Despite the downward trend, analysts warned that escalating geopolitical risks could limit gold’s decline. “Rising geopolitical tensions could limit gold’s downside. As war risks escalate and new conflicts emerge, investors are likely to seek refuge in gold,” Mehta added, citing tensions among major powers and regional strains, including India-Pakistan frictions, according to media reports.
Silver prices mirrored gold’s decline, plunging by Rs 1,400 to Rs 98,500 per kilogram, compared to Rs 99,900 in the previous session, as reported by media sources. The local bullion markets were closed on Friday due to a traders’ protest against the terror attack in Jammu and Kashmir’s Pahalgam.
On the global front, spot gold fell nearly 1 per cent to USD 3,291.04 per ounce, while spot silver in Asian markets traded 0.2 per cent lower at USD 33.05 per ounce, according to media reports.
Jateen Trivedi, Vice President and Research Analyst of Commodity and Currency at LKP Securities, said that optimism over possible US-China tariff agreements and discussions on a potential Russia-Ukraine peace deal further reduced the safe-haven appeal of gold, as quoted by media reports.kashmir life.