In the national capital, gold prices experienced a significant drop on Friday, ending a five-day record-breaking rally. According to the All India Sarafa Association:
- Gold (99.9% purity) fell by Rs 1,350 to Rs 93,000 per 10 grams.
- Gold (99.5% purity) also decreased by Rs 1,350 to Rs 92,550 per 10 grams.
This decline was attributed to a weakened trend in international markets and a decrease in safe-haven demand following the implementation of new US tariffs.
Factors Contributing to the Decline:
- Reduced Safe-Haven Demand: Investors shifted their focus to global trade dynamics and potential economic repercussions.
- US Tariffs: New tariffs imposed by US President Donald Trump triggered concerns about a potential global recession.
- Global Equity Sell-Off: A broader sell-off in global equities contributed to the decline in precious metal prices.
- US Treasury Bonds: Investors are moving towards US Treasury bonds, driving yields below 4%, indicating expectations of deeper rate cuts by the US Federal Reserve (Fed).
- Silver’s Steep Fall: Silver prices also saw a substantial drop, falling by Rs 5,000 to Rs 95,500 per kg, marking the steepest fall in four months.
- International Market Declines: Spot gold fell by 0.70% to USD 3,093.60 per ounce, and spot silver fell by 1.69% to USD 31.32 per ounce.
- Fed’s Future Actions: Market participants are awaiting insights from Fed Chair Jerome Powell’s upcoming press conference regarding the Fed’s stance on Trump’s policies and potential responses to deteriorating economic conditions.
