Gold rate in India has dipped below Rs 95,000, hitting a one-week low as the yellow metal continues to face headwinds. Since the day the Indian-Pakistan ceasefire has been in place, gold has lost Rs 3,430 per ten gram. The easing of tensions at the India-Pakistan border after the two countries declared a ceasefire seems to have subdued the geopolitical tensions in the region.
The gold rate today in India is Rs 92,631, lower by 3.7% over the previous day’s closing price of Rs 96,061. Gold futures June contracts are trading at Rs 92,707, down by 3.95%.
In the international markets, too, gold lost support as optimism over US-China trade talks dampened demand for safe-haven assets. Gold slipped over 3% to trade at $3,222 on Monday, hitting a one-week low.
Any positive developments in the US-China trade deal will further dampen sentiments in gold. The Trump administration has announced a breakthrough trade agreement with China, following weekend negotiations in Switzerland.
Treasury Secretary Scott Bessent called the two days of meetings with Chinese officials in Geneva ‘productive,’ adding that more information would be provided on Monday morning. “The sellers would be able to regain control, at least temporarily, if tensions were to decrease or some tariffs were to be lowered,” says Dr. Renisha Chainani, Head – Research at Augmont.
Gold is also under pressure following last week’s US Federal Reserve’s decision not to cut interest rates. The US Dollar has regained its strength and is back above 100, putting further pressure on gold prices.
“Gold prices may drop to $3200 (Rs 92,000) if they remain below $3,365 (Rs 94,000) this week. And we are expected to see a $200 decline from those levels up to $3,000 (Rs 86,000) if prices break and hold below $3,200, which is the Double Top formation’s neckline support,” adds Dr. Chainani.
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