On Tuesday, the price of gold on the MCX fell by ₹1400, significantly down from its lifetime high. A major reason for this decline is the announcement by US President Donald Trump to remove tariffs on gold. Although the price of gold remains above ₹1 lakh per 10 grams, a downward trend continues in the market.
Gold Price Today: August 12 brought a significant setback for gold investors. On the MCX, the price of gold fell by ₹1400 to ₹1,00,389 per 10 grams, while its lifetime high is ₹1,02,250. The reason for the decline is the announcement by US President Donald Trump that there will be no tariffs on gold. Following this news, gold futures prices also fell sharply in the international market.
Gold Plunges on Trump's Decision, MCX Sees ₹1400 Drop
The beginning of the week brought a setback for gold investors. On the Multi Commodity Exchange (MCX), gold prices saw a sharp decline of up to ₹1400 on Monday. This decline came after US President Donald Trump's announcement in which he clearly refused to impose any kind of tariff on gold.
The impact of this decision was seen not only in the Indian market but also internationally.
Gold Price on MCX
In Monday's trading, the price of gold with 99.9 percent purity fell by ₹1409, or about 1.38 percent, to ₹1,00,389 per 10 grams. During trading, gold reached ₹1,01,199 at one point, but could not sustain that level and closed weaker at the end of the day. The lifetime high for gold on the MCX is ₹1,02,250 per 10 grams, meaning the current price is ₹1861 below this high level.
On Tuesday morning, gold also opened in the red in futures trading, which is an indication for investors that pressure is currently maintained.
Decline in the International Market Too
The impact of Trump's announcement was clearly visible globally as well. On Monday, gold futures prices closed 2.48 percent lower at $3404.70 per ounce. Prior to this, gold had remained consistently high in the international market, but the news of tariff exemption broke the bullish trend.
Gold Becomes Cheaper in the Bullion Market
A decline in gold prices was also recorded in Delhi's bullion market on Monday. Gold with 99.9 percent purity closed at ₹1,02,520 per 10 grams, down by ₹900. Previously, on Friday, it had reached its all-time high of ₹1,03,420, with an increase of ₹800.
Similarly, the price of gold with 99.5 percent purity also decreased by ₹900 to ₹1,02,100 per 10 grams.
Why Trump's Decision Had an Impact
US President Donald Trump's announcement that no tariffs would be imposed on gold was unexpected for the market. In fact, gold is often bought as a safe investment during times of economic uncertainty, but tariff exemptions can put pressure on the demand for gold. This is why its prices fell sharply.
Gains Last Week, Decline This Week
Last week, gold saw a significant increase. On Friday, gold in the bullion market reached a new record level with an increase of ₹800. But just two trading days later, prices slipped down. In this way, a major fluctuation in prices has been seen in just 72 hours.
Silver Remains Stable
Amidst the fall in gold, relatively less change was seen in silver prices. However, a slight decline was recorded in some markets, but it was not as sharp as that of gold. Experts believe that if the dollar remains b, pressure on silver may also increase in the near future.
