Gold prices tumbled sharply on Tuesday, shedding ₹1,000 per 10 grams in the domestic market, as a global sell-off and easing trade concerns dampened demand for the precious metal.
In the national capital, gold of 99.9% purity was priced at ₹1,01,520 per 10 grams, compared with the previous session’s ₹1,02,520. Gold of 99.5% purity also recorded a similar drop, slipping to ₹1,01,100 per 10 grams, inclusive of taxes.
Market analysts attributed the fall to remarks by US President Donald Trump, who clarified on social media that there would be no tariffs on gold imports. The announcement, while yet to receive official confirmation from the White House, eased fears of higher import costs.
“Gold prices dipped after US President Donald Trump clarified on social media that there would be no tariffs on gold imports. Although an official confirmation from the White House is still pending, the announcement eased some trade-related concerns,” said Chintan Mehta, CEO of Abans Financial Services.
The sentiment was further impacted by the White House’s decision to extend the suspension of high-level tariffs on China until November 11, a move seen as reducing short-term macroeconomic tensions. “This decision has helped ease ongoing macroeconomic tensions for now, which has pressured gold prices downwards,” Mehta added.
Currency movements also played a role in influencing gold rates. On Tuesday, the rupee strengthened by 10 paise to 87.65 against the US dollar in early trade, adding to the downward pressure on bullion prices.
Silver prices mirrored the yellow metal’s weakness, sliding ₹2,000 to ₹1,12,000 per kilogram, inclusive of all taxes, from the previous day’s ₹1,14,000.
On the international stage, however, spot gold was marginally higher, trading at USD 3,347.18 per ounce in New York, up 0.13%. Despite the slight uptick, prices remained below the USD 3,400 mark.
“Trump’s announcement on Monday that gold will not be subject to tariffs allayed concerns about a dramatic rise in the price of importing the metal, causing prices to drop below USD 3,400 per ounce,” noted Renisha Chainani, Head of Research at Augmont.
In contrast, spot silver gained nearly 1% to trade at USD 37.90 per ounce in overseas markets.
Market watchers are now turning their attention to upcoming US macroeconomic data, which could provide clues on the Federal Reserve’s next move on interest rates. “Investors will continue to closely watch upcoming US macroeconomic data, such as Consumer Price Index, Producer Price Index and retail sales, which will provide fresh cues on the Federal Reserve’s interest rate trajectory,” Chainani said.
Additionally, speeches from Federal Reserve officials are expected to influence short-term movements in the US dollar, which could have a knock-on effect on gold prices.
Speculation is also building that a scheduled meeting between Trump and Russian President Vladimir Putin later this week could produce a truce plan for the ongoing Russia-Ukraine conflict—news that, if confirmed, may further reduce demand for gold as a safe-haven asset.
