Precious metal prices plummeted on Monday, reflecting a shift in global market sentiment as investors turned away from safe-haven assets. The decline came after positive developments in US-China trade negotiations and a strengthening US dollar.
On the Multi Commodity Exchange (MCX), gold futures for June delivery dropped by 3.73%, or Rs 3,596, settling at Rs 92,922 per 10 grams. Similarly, silver futures for May delivery fell by 0.6%, or Rs 585, closing at Rs 96,221 per kilogram.
This price dip follows renewed optimism surrounding the global trade environment. Spot gold prices fell by 1.4%, reaching $3,277.68 per ounce during early Asian trading, while US gold futures slid 1.9%, closing at $3,281.40. The decline comes in the wake of reports that US and Chinese negotiators achieved a “key consensus” during trade discussions held over the weekend in Switzerland. A joint statement is expected from Chinese Vice Premier He Lifeng later on Monday.
Jigar Trivedi, Senior Commodity Analyst at Reliance Securities, attributed the drop to a stronger dollar and easing geopolitical tensions. “The Trump administration’s positive tone on trade progress has lifted the dollar index, which, in turn, has pressured gold prices,” said Trivedi.
The market shift marks a stark contrast to last week, when both gold and silver prices surged due to escalating tensions between India and Pakistan and a surprise interest rate cut by the Bank of England. During that period, gold hit $3,344 per ounce, while silver reached $33 per ounce in global markets, driven by heightened demand for safe-haven assets.
Manoj Jain, Director at India Nivesh, emphasized the continued volatility in the market. “Prices rebounded sharply last week due to the Indo-Pak conflict and global rate cuts, but the positive trade developments between the US and China are now limiting further gains. We expect volatility to persist in the short term,” Jain stated.
