NEW DELHI— Gold and silver prices saw significant declines on Monday, driven by growing uncertainty over U.S. reciprocal tariffs and cautious investor sentiment. Gold prices dropped by more than Rs 400, while silver tumbled by over Rs 1,000.
According to the latest data from the India Bullion and Jewellers Association (IBJA), 24-carat gold closed at Rs 96,596 per 10 grams, down Rs 425 from the previous day’s closing price of Rs 97,021.
Silver prices also took a hit, falling Rs 1,049 to Rs 106,531 per kilogram, compared to Rs 107,580 in the previous session.
The decline in gold prices follows recent ceasefire announcements and stronger-than-expected U.S. economic data, which have dampened safe-haven demand.
“However, given that gold buying by central banks is running at over 1,000 tonnes per year and is unlikely to slow in the coming months, and with inflation still above the Federal Reserve’s expectations, demand fundamentals remain supportive,” said Sandip Raichura, CEO of Retail Broking and Distribution and Director at PL Capital.
On the Multi Commodity Exchange (MCX), the gold futures contract expiring on August 5 fell by Rs 487, or 0.5 percent, settling at Rs 96,503 per 10 grams—down from the previous close of Rs 96,990.
On the international front, Comex gold dropped 0.93 percent, or $31.10, to $3,311.80 per ounce.
“Gold prices stayed range-bound to weak near Rs 96,650, down about Rs 350, as Comex gold slipped to $3,310 amid cautious sentiment,” said Jateen Trivedi, Vice President and Research Analyst for Commodities and Currency at LKP Securities.
Analysts noted that uncertainty around the expiration of the U.S. trade tariff extension timeline is weighing on global trade sentiment and putting pressure on precious metals. Market participants are watching for a possible extension of the deadline, which could shift investor positioning.
Meanwhile, investor hesitation over a potential interim India-U.S. trade agreement kept domestic equity markets subdued. The Sensex closed nearly flat at 83,409.68, up just 9.61 points or 0.01 percent. The Nifty also remained unchanged, ending the day at 25,461.30, up only 0.30 points. (Source: IANS)
