Recent decisions by former US President Donald Trump have lifted risk appetite in global markets, triggering a sharp decline in gold and silver prices. In a single session, gold fell by more than Rs 2,300, while silver declined by up to Rs 13,000 per kilogram.
After remaining at record highs for an extended period, gold and silver prices witnessed a steep fall on Thursday across both futures and spot markets. The decline was observed simultaneously in domestic and international markets, reflecting a shift in global cues and developments linked to the United States.
In the futures market, precious metals came under pressure soon after the opening. On the Multi Commodity Exchange (MCX), gold was trading around Rs 1,49,477 per 10 grams at about 10:15 am, down 2.21 percent from the previous session. The move marked one of the sharpest single-day declines in gold prices in recent days.
Silver registered a steeper fall. On MCX, silver declined by nearly 4 percent to around Rs 3,05,753 per kilogram. The metal dropped by as much as Rs 13,000 per kilogram in a single session. According to traders, profit booking at elevated levels and signals from international markets contributed to the decline.
Gold and silver had remained elevated over the past several weeks, supported by geopolitical tensions, economic uncertainty, and demand for safe-haven assets. Prices had climbed to record levels as investors increased exposure to precious metals.
As global risk sentiment shifted, investors began booking profits at higher levels. The change in sentiment led to selling pressure, resulting in a sharp correction within a single trading session.
In the spot market, gold prices remained elevated despite the decline in futures. Rates varied across cities. According to Goodreturns data, 24-carat gold in Delhi was priced at Rs 15,446 per gram, while 22-carat gold was at Rs 14,160 per gram and 18-carat gold at Rs 11,528 per gram.
In Mumbai and Kolkata, 24-carat gold was trading at Rs 15,431 per gram. In both cities, 22-carat gold was priced at Rs 14,145 per gram and 18-carat gold at Rs 11,573 per gram.
Chennai recorded the highest gold prices among major cities. In the city, 24-carat gold was priced at Rs 15,491 per gram, 22-carat gold at Rs 14,200 per gram, and 18-carat gold at Rs 11,850 per gram.
In the global market, gold prices also weakened, slipping below $4,800 per ounce after recently scaling successive record highs.
According to experts, the decline was driven by key political developments in the United States. Former US President Donald Trump indicated a pause on plans to impose tariffs on European NATO countries and announced a framework for a deal with NATO related to Greenland.
These developments eased global tensions to some extent and improved risk appetite in financial markets. As risk-taking increased, demand for safe-haven assets declined, leading to pressure on gold and silver prices.
