Gold Prices Drop by ₹2,400 Amid Global Trends; Silver Gains ₹700: SRINAGAR: Gold prices saw a sharp correction on Wednesday, falling Rs 2,400 to Rs 99,200 per 10 grams in the national capital, retreating from Tuesday’s record high of over Rs 1 lakh, amid weak global cues and reduced safe-haven demand.
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According to the All India Sarafa Association, 24-carat gold (99.9 per cent purity) had surged by Rs 1,800 on Tuesday to touch an all-time high of Rs 1,01,600 per 10 grams. However, by Wednesday, it witnessed a significant pullback.
Similarly, gold of 99.5 per cent purity fell steeply by Rs 3,400 to Rs 98,700 per 10 grams, a day after jumping Rs 2,800 to its peak of Rs 1,02,100.Media reports attributed the price drop to cooling global tensions, particularly comments by former US President Donald Trump that hinted at potential reductions in tariffs on Chinese goods, which led to decreased demand for gold as a safe-haven asset.
On the Multi Commodity Exchange (MCX), gold futures for June delivery fell by Rs 1,435 or 1.47 per cent to Rs 95,905 per 10 grams. The August contract also slipped by Rs 1,330 or 1.36 per cent to Rs 96,669, down from its historic high of Rs 1,00,000 in the previous session.Gold prices witnessed sharp weakness, marking a steep sell-off since April 3, signalling a possible short-term reversal from recent peaks,” media reports quoted a research analyst from LKP Securities as saying. The analyst added that gold is now expected to trade within the Rs 94,000–98,000 range in the short term, with volatility likely to remain high.
In contrast, silver prices continued their upward movement, climbing Rs 700 to reach Rs 99,200 per kg, after closing flat at Rs 98,500 in the prior session.
Globally, spot gold prices also declined, trading at USD 3,330.99 per ounce, down USD 50.37 or 1.49 per cent. This followed Tuesday’s historic surge to USD 3,500.33 per ounce. Media reports noted that the decline was partly triggered by Trump’s assurance that he would not remove Federal Reserve Chair Jerome Powell, which helped ease investor concerns.Spot silver in the Asian markets saw a modest rise, up 1.19 per cent to USD 32.90 per ounce.
According to further media reports, analysts are now closely watching macroeconomic indicators, including global flash PMIs and US new home sales data expected later on Wednesday, which could influence future gold trends.
Despite Wednesday’s dip, some experts remain optimistic about the long-term outlook for gold. “The international gold market continues to attract investment during uncertain times. Central banks and hedge funds are still viewing it as a safe haven amid global sanctions and geopolitical shifts,” media reports quoted a commodities expert from Infinity Money as saying.
Analysts note that until the global trade environment stabilises, significant corrections in gold prices may remain limited.kashmir life.