Gold prices tumbled by ₹1,391 per 10 grams to ₹75,690 from ₹77,081 logged on Monday as geopolitical tensions eased in West Asia.
In fact, pure gold prices have plunged by ₹2,638 per 10 grams from Friday’s closing of ₹77,787, according to the Indian Bullion and Jewellers’ Association of India.
Gold fell over $100 an ounce to $2,615 in the international market on Monday due to the ceasefire agreement signed between Israel and Hezbollah. The development eased safe-heaven fund flows, pulling down gold prices. Gold prices are down about 6 per cent from its record high of $2,790 an ounce recorded late last month.
Moreover, US President-elect Donald Trump has selected hedge fund manager Scott Bessent to lead the US Treasury. Gold also lost ground due to Bessent’s image as a cautious operator, likely to restrain some of President Trump’s more aggressive trade and economic plans.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, said gold prices later found support and rose as Donald Trump vowed to levy a 10 per cent tariff on all imports from China and 25 per cent on all goods entering the US from Canada and Mexico.
“Gold prices are very volatile and may trade in the range of $2600 (₹75,000 per 10 grams) an ounce and $2700 (₹77,000) for the next few days,” he said.
Pranav Mer, Vice-President, EBG – Commodity & Currency Research, JM Financial Services, said gold prices in the international markets were down over 3 per cent on Monday, as the risk premium has eased amid reports of a ceasefire between Israel and Lebanon, while profit-booking, too, was seen after last week’s stellar rally.
Additionally, he said support was seen from rupee appreciation as well, with the local unit up 10-12 paise in two trading sessions.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said gold remained volatile as a de-escalation in West Asia tensions led to a fading of the war premium and erased the 3 per cent gain achieved last week.
In the short term, gold is expected to stay in a volatile trading range as market participants assess global developments, he said.
