Gold prices saw a significant drop in the national capital, falling by Rs 1,000 to settle at Rs 1,01,520 per 10 grams on Tuesday. This decline was primarily attributed to a global sell-off in the precious metal. Similarly, gold of 99.5% purity also decreased by Rs 1,000 to Rs 1,01,100 per 10 grams.
Meanwhile, silver prices also plummeted, with a Rs 2,000 slump bringing the cost down to Rs 1,12,000 per kilogram.
Several factors contributed to this market downturn:
- US Trade Policy: Gold prices dipped following a social media post from US President Donald Trump, who clarified that there would be no tariffs on gold imports. This eased some trade-related concerns, even without an official White House confirmation.
- Macroeconomic Tensions: The White House announced an extension of the suspension of high-level tariffs on China until November 11. This move helped to temporarily ease ongoing macroeconomic tensions, which in turn put downward pressure on gold prices.
- Potential Geopolitical Resolution: Speculation about a potential truce plan for the Russia-Ukraine conflict, following a meeting between US President Trump and Russian President Vladimir Putin, also reduced demand for gold as a safe-haven asset.
Global Market Performance
On the global front, spot gold was trading at $3,347.18 per ounce, showing a slight increase of 0.13% in New York. However, the price remained below the $3,400 per ounce mark, which experts say was a direct result of Trump’s tariff announcement. Spot silver also saw an increase, rising by nearly 1% to $37.90 per ounce in overseas markets.
