Gold prices have witnessed a significant decline. In the international market, gold fell by 2.7% to $4,002 per ounce, while silver dropped by 4.8% to $46.28/oz. In India too, gold became cheaper by ₹9,356, reaching ₹1,21,518 per 10 grams. Demand for safe-haven gold weakened due to US-China talks and profit-booking.
Gold Price Today: On Monday, both gold and silver prices saw a sharp decline in the international market. Spot gold plummeted by 2.7% to $4,002 per ounce, marking its lowest level since October 10, while silver fell by 4.8% to $46.28/oz. India also felt the impact, with gold dropping by ₹9,356 to ₹1,21,518 per 10 grams. The demand for safe-haven gold decreased due to a potential trade deal between the US and China and profit-booking by investors. According to analysts, this decline is a result of a balance between technical selling and economic expectations.
Gold Price Falls in International Market
In the international market, spot gold fell by 2.7% to $4,002 per ounce. During the session, it slipped to as low as $3,970, the lowest level since October 10. Growing talks between the US and China and expectations of a potential trade deal have moved investors away from safe investments. Investors began profit-booking in safe-haven gold, leading to a fall in prices.
Impact Felt in India Too
The effect of the international decline was also observed in India. According to data from the India Bullion and Jewellers Association (IBJA), gold became cheaper by ₹9,356 last week. Last week, the price of 10 grams of 24-carat gold was ₹1,21,518, while on October 18, it had reached an all-time high of ₹1,30,874. Silver also dropped significantly, falling from ₹1,69,230 per kilogram to ₹1,47,033.
However, if we look at the year-long performance, both gold and silver have become more expensive so far. At the beginning of this year, specifically on December 31, 2024, the price of 10 grams of 24-carat gold was ₹76,162, which has now increased to ₹1,21,077. This means gold has become ₹45,915 more expensive this year so far. Similarly, silver has risen from ₹86,017 per kilogram to ₹1,45,031 per kilogram, marking an increase of approximately ₹69,014.
What Are the Reasons Behind Gold's Decline?
There are several reasons behind the fall in gold prices. The biggest reason is the positive expectations surrounding the ongoing talks between the US and China. Investors are confident that an agreement on a trade deal between the two countries could be reached. In such a scenario, the demand for gold, considered a safe-haven investment, has decreased.
According to David Meger, Director of Metal Trading at High Ridge Futures, if an agreement is reached between the US and China, investors will reduce their investments in safe-haven assets like gold.
Impact of Profit-Booking and Technical Selling
At the beginning of October, gold had reached between $3,800 and $4,400 per ounce. Following such a rapid increase, investors began booking profits, which put pressure on the market. This profit-booking also indicated technical selling, leading to a further decline in prices.
