Gold Price Today: Yellow metal slips by Rs 4,200/10 g amid US-China trade negotiations

Amid easing geo-political tensions and recovery in the greenback against major currencies, Gold June futures contracts at MCX fell sharply by Rs 4,186 or 4.3% to Rs 92,543/ 10 grams. The decline followed the trade negotiations between the US and China regarding the tariffs.

The optimistic outcome of the US-China meeting, where both nations discussed a ‘reset’ in trade relations and an opening up of China to American businesses, exerted downward pressure on gold prices.

“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS,” US President Donald Trump said in a tweet on his ‘Truth Social’ platform on X on Sunday.

On Monday, China also decided to lower tariffs on US imports to 30% for a 90-day period, further reducing demand for safe-haven assets.

With expectations of improved trade dynamics and economic stability, demand for safe-haven assets like gold may decline as investors pivot towards riskier assets.

Additionally, the pause in safe-haven buying was further supported by the calm observed in the India-Pakistan border areas after the ceasefire agreement. A temporary ceasefire agreement between India and Pakistan eased concerns over the border conflict.

Along with the yellow metal, silver July futures contracts also took a hit and fell by Rs 2,274 or 2.35% to trade at Rs 94,455/kg.

Earlier, on Friday, gold and silver settled on a positive note in the domestic and international markets. Gold June futures contract settled at Rs 96,518 per 10 grams with a gain of 0.36% and silver July futures contract settled at Rs 96,729 per kilogram with a gain of 0.22%.

Gold and silver showed very high volatility and rebounded again last week amid the Indo-Pak war and interest rate cuts by the BOE. The Indian Army’s operation Sindoor escalates tensions between India and Pakistan and supports safe-haven buying for precious metals.

“Gold and silver also gained after the Bank of England cuts interest rates by 25 basis points,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.

“Global growth worries and investment demand are also supporting prices of precious metals. However, the dollar index is trading steady above 100 marks, the U.S. Fed maintains interest rates unchanged, and US-China trade negotiation hopes are limiting gains for precious metals,” he added.

Today, the US Dollar Index, DXY, was hovering near the 100.57 mark, gaining 0.23 or 0.23%.

Jain also stated that he expects gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions; gold prices could hold their support level of $3,180 per troy ounce and silver prices could also hold $31.40 per troy ounce levels.

How to trade gold and silver?

Manoj Kumar Jain has given the following ranges for gold and silver on MCX:

• Gold has support at Rs 96,100-95,550 and resistance at Rs 97,000-97,450
• Silver has support at Rs 96,000-95,350 and resistance at Rs 97,400-98,200.

Jain suggests buying silver on dips around Rs 95,850 with a stop loss of Rs 95,100 for a target of Rs 97,400.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,320/8 grams while pure gold (24 carat) prices stand at Rs 61,120/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,400/8 grams while pure gold (24 carat) prices stand at Rs 61,152/8 grams.

Also read: Sensex surges 2,300 points, Nifty tops 24,700 after India-Pak ceasefire calms D-Street

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,736/8 grams while pure gold (24 carat) prices stand at Rs 60,536/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 57,120/8 grams while pure gold (24 carat) prices stand at Rs 60,896/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times