Gold and Silver Prices Plunge Amidst Trump's Tariff Policy and Global Recession Fears; Experts Warn of Potential 38% Drop in Gold.
Gold Price Outlook: Friday witnessed a significant decline in gold and silver prices in both domestic and international markets. While investors typically view gold as a safe haven during times of political and economic instability, the situation unfolded differently this time. The potential recession in the US and former President Donald Trump's announced "Reciprocal Tariffs" policy instilled apprehension in global equity markets, impacting gold and silver prices.
Gold and Silver Plummet on MCX
On the Multi Commodity Exchange of India (MCX), gold prices slumped by 0.9%, falling below ₹90,000 per 10 grams and closing at ₹89,260. However, gold futures for June 2025 delivery remained at ₹89,885. Silver experienced a more substantial decline of 2.67%, closing near ₹92,910 per kilogram.
Weakness in International Markets
On the New York-based COMEX, June gold futures dropped by 1.4% to $3,073.5 per ounce, marking a one-week low. Silver experienced an even steeper decline, falling by up to 8%, further increasing investor anxiety.
Largest Drop in US Stocks in Five Years
Friday also saw massive sell-offs in global stocks. US stock markets experienced their largest decline in five years. In India, the BSE Sensex plummeted by 930 points, closing at 75,364, while the Nifty fell by 345 points to 22,904. Experts attribute this to investor anxiety stemming from the anticipated US recession resulting from Trump's tariff policy.
Reasons Behind Gold Price Decline – Expert Opinion
Market analysts suggest that the exemption of gold and other precious metals from Trump's tariff announcement has weakened the earlier price surge. Additionally, profit-booking by investors following recent months of continuous price increases contributed to the decline.
Further Gold Price Decline?
Some experts predict a further drop in gold prices. Continued international pressure could potentially push gold down to $1,820 per ounce, representing an approximate 38% decrease from the current level. Such a scenario would significantly impact investors.
