Will Gold Prices Continue to Decline as Investors Seek Clarity on US Trade Deals?
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Synopsis
Gold prices have plummeted significantly as investors remain cautious, awaiting clarity on US trade policies. This trend is mirrored in silver prices, which have also dipped slightly. With geopolitical tensions and tariffs affecting market sentiment, the future of gold remains uncertain. Stay tuned for insights into this evolving financial landscape.
Key Takeaways
- Gold prices fell by over Rs 850 as demand eased.
- 24-carat gold closed at Rs 96,085 per 10 grams.
- Silver prices also dipped, now at Rs 107,280 per kg.
- Market uncertainty is driven by US trade policies.
- Expect continued volatility in gold prices.
New Delhi, July 9 (NationPress) Gold prices have seen a significant decline on Wednesday, dropping by over Rs 850 as demand softened while investors awaited clearer insights on US trade agreements. Silver prices experienced a slight dip as well.
The price for 24-carat (999 purity) gold closed at Rs 96,085 per 10 grams, down Rs 887 from the previous closing of Rs 96,972, according to the latest figures from the India Bullion and Jewellers Association (IBJA).
As per the data, silver was quoted at Rs 107,280 per kg, a decrease of Rs 220 from Rs 107,750, the price from the previous day.
Gold prices have been fluctuating between Rs 95,000 and Rs 96,500 amid ongoing geopolitical tensions.
"Gold is likely to remain volatile with a trading range expected between Rs 95,000 and Rs 96,500," stated Jateen Trivedi, VP Research Analyst-Commodity and Currency at LKP Securities.
Simultaneously, MCX gold followed the trend with the future contract expiring on August 5, dropping Rs 572 or 0.59 percent to Rs 95,900 per 10 grams, compared to Rs 96,472 from the previous day.
On the international front, gold prices also saw a decline, with Comex gold settling at $3,294.0 per ounce, down 0.69 percent or $22.90.
"Gold traded weak by another Rs 400 to hover near Rs 96,000 as Comex gold slipped below Rs 3,300, impacting global sentiment. While MCX gold received limited support from a weaker rupee, the overall trend remains bearish due to US actions," Trivedi added.
Recent tariff measures announced by US President Donald Trump have sent negative signals to investors and traders. In ongoing negotiations, the president declared a 50 percent tariff on copper and a 25 to 40 percent tariff on goods from 14 countries, including Japan and South Korea.
Furthermore, Indian stock markets ended lower after a volatile trading session on Wednesday, driven by selling in IT and metals stocks.
The Sensex concluded at 83,536.08, while the Nifty fell 46.40 points or 0.18 percent to finish at 25,476.10.
Point of View
It is crucial to remain objective in our analysis of the fluctuating gold prices amidst geopolitical tensions and US trade policies. These developments not only impact investors but also reflect broader economic trends. Our commitment is to provide accurate, timely information to empower our audience in making informed decisions.
NationPress
21/07/2025
Frequently Asked Questions
Why have gold prices fallen recently?
Gold prices have declined due to reduced demand and uncertainty surrounding US trade deals, which has created a bearish sentiment in the market.
What factors influence gold prices?
Gold prices are influenced by geopolitical tensions, demand from investors, currency fluctuations, and trade policies among major economies.
How do tariffs affect gold prices?
Tariffs can create economic uncertainty and affect demand for gold, leading to price fluctuations in the market.
What is the current price range for gold?
Currently, gold prices are fluctuating between Rs 95,000 and Rs 96,500.
What are experts saying about the future of gold prices?
Experts suggest that gold will remain volatile, with a trading range expected between Rs 95,000 and Rs 96,500 due to ongoing geopolitical uncertainties.
