Gold Prices Plunge Over $100 Per Gram as US-China Slash Tariffs; Rates Drop to ₹95,930 in India

In a major market shift, gold prices fell sharply by over $100 per gram globally, triggering a notable correction in Indian markets as well. The yellow metal, which had recently crossed the ₹1 lakh mark per 10 grams, dropped to ₹95,930, a decline of around ₹3,740 in a single day.

The steep fall in gold prices comes right after the US and China announced a significant cut in tariff rates, easing global trade tensions.

Global Correction Sparks Domestic Dip

Gold, which had been riding high amidst global uncertainties and tariff wars, witnessed a sharp 3.5% decline in the international markets. This has now translated into a meaningful correction in Indian prices too. The easing of trade tensions between the US and China has calmed global investor anxiety, which had earlier driven up the demand for safe-haven assets like gold.

Gold prices had surged nearly 29% in the last six months, making it one of the best-performing assets during a period of geopolitical uncertainty.

Marriage Season Keeps Demand Intact

Despite the sharp fall in prices, demand for gold remains strong in India, especially due to the ongoing wedding season. Experts believe that the recent correction could actually boost demand, as buyers see this as an opportunity to purchase gold at relatively lower prices.

“The price correction will only push up the demand further,” said Jain, a market observer.

Equity Markets Rally, Gold Cools Off

Interestingly, the correction in gold coincided with a strong rally in Indian stock markets. On Monday, the Sensex jumped by 2,975 points (3.74%) to close at 82,429.90, while the Nifty gained 916.70 points (3.82%) to settle at 24,924.70. This was one of the biggest single-day gains in recent times.

Over the last one month, the Sensex has outperformed gold, clocking gains of over 7%, while gold prices rose by just around 3.7% during the same period. This marks a temporary reversal of trend, as gold had earlier outshone equity markets over a six-month window.

In Summary

Gold prices dropped by over $100 per gram globally and fell to ₹95,930 in India, following the US-China decision to slash tariff rates. While prices have cooled off, demand remains strong due to the wedding season. At the same time, Indian equity markets posted massive gains, signaling a shift in investor sentiment towards riskier assets.