Gold Prices Take a Significant Hit

Gold rates witnessed a sharp decline, dropping by Rs 1,000 to Rs 1,01,520 per 10 grams in Delhi this Tuesday, influenced by downturns in international markets, as reported by the All India Sarafa Association.

Previous Close: The 99.9 per cent pure gold had closed at Rs 1,02,520 per 10 grams the day before.

Domestic and International Factors at Play

In the domestic sphere, 99.5 per cent pure gold saw a decrease of Rs 1,000, settling at Rs 1,01,100 per 10 grams, inclusive of all taxes. Abans Financial Services CEO Chintan Mehta attributed the dip to US President Donald Trump's social media clarification regarding no tariffs on gold imports, easing trade-related concerns.

Furthermore, the White House's announcement to extend the suspension of significant tariffs on China until November 11 has temporarily mitigated macroeconomic worries, exerting downward pressure on gold prices.

Market Reactions and Future Outlook

The rupee strengthened by 10 paise against the US Dollar, reaching 87.65 in early trading. Silver prices also declined by Rs 2,000 to Rs 1,12,000 per kilogram. Internationally, spot gold traded slightly higher by 0.13 per cent at $3,347.18 per ounce in New York.

Renisha Chainani of Augmont highlighted that Trump's announcement allayed fears of a dramatic rise in gold import prices, causing prices to drop below USD 3,400 per ounce. Investors are keenly awaiting upcoming US macroeconomic data for cues on the Federal Reserve's interest rate trajectory.