Gold Prices Fall Amid Global Trade Fears: What’s Next for Investors?

Mumbai: Gold and Silver Prices See Significant Fluctuations Amid Global Trade War Fears As global trade tensions intensify, the prices of gold and silver in India have experienced notable changes. According to data from the Multi Commodity Exchange (MCX), gold opened at Rs 88,130 per 10 grams on April 6, while silver was priced at Rs 92,403 per kg. This marks a significant dip in the price of gold, which had previously been trading over Rs 90,000.

Gold Rate Today in India: Latest Retail Selling Prices

As per the Indian Bullion and Jewelers Association (IBJA), the indicative retail selling rates for gold jewellery (as of April 4, 2025) are as follows:

• Fine Gold (24 K): Rs 91,010 per 10 grams
• 22 KT Gold: Rs 88,830 per 10 grams

Gold Prices Plunge from Over Rs 90,000 to Rs 88,130: A Steep Decline

Gold prices have seen a sharp decline, falling from Rs 90,057 per 10 grams to Rs 88,099, representing a drop of around 2.17%. In tandem, the global spot gold price also saw a significant drop of 2.4%, reaching $3,041.11 per ounce. The market had already been factoring in the possibility of a global trade war, but the announcement of US tariffs on key trading partners sparked a round of profit-booking, further driving down gold prices.

What Led to the Fall in Gold Prices?

Several factors have contributed to the fall in gold prices. The announcement of US tariffs triggered profit-taking among investors, who had been holding onto gold due to trade war fears. Additionally, easing tensions in conflict zones such as Russia-Ukraine and the Middle East have lessened the demand for safe-haven assets like gold, further pressuring the metal’s prices.

Also Read:Market Outlook: RBI MPC, CPI, tariffs and global economic data key triggers for next week

Gold Technical Signals: What’s Next for Gold Prices?

Looking at the technical signals, Comex gold is facing strong resistance in the $3,120 to $3,130 range. If prices fall below $3,050, a deeper correction in gold prices may follow. This could have a significant impact on the domestic gold market as well.

Will Gold Prices Continue to Decline in India?

Interestingly, the exclusion of gold and silver from US tariffs eased supply-side concerns, which led to an increase in Comex inventories, putting downward pressure on prices. This has made it increasingly difficult for domestic gold prices to stay above Rs 88,800 per 10 grams. If this level breaks, gold may fall to Rs 87,000 per 10 grams, and if the bearish trend continues, it could even drop to Rs 84,000 per 10 grams.

Impact of Strong US Jobs Report on Gold Prices

Adding further pressure to gold prices, a strong US jobs report indicates that the Federal Reserve is unlikely to cut interest rates in the near future. This could limit the upside potential for gold and continue to exert downward pressure on its prices.

Gold Price Forecast for 2025 and 2026: HSBC’s Updated Outlook

HSBC has raised its gold price forecast for 2025 and 2026, citing geopolitical risks such as the Ukraine war, Middle East conflicts, and economic uncertainty. The investment bank has increased its forecast for 2025 to $3,015 per ounce and for 2026 to $2,915 per ounce, up from its previous projections of $2,687 and $2,615 per ounce.

Geopolitical risks and uncertainty surrounding U.S. foreign policy are likely to continue driving gold prices higher. Central banks are expected to keep buying gold in 2025 and 2026, although HSBC warns that purchases may slow down if gold prices rise above $3,000 per ounce.

Market Dynamics and the Future of Gold Prices

Gold and silver prices are likely to remain volatile, driven by ongoing trade tensions, geopolitical developments, and economic uncertainties. Investors should stay alert and monitor key economic indicators, including tariff updates and central bank policies, which will continue to influence the direction of gold prices in India and globally.