Gold prices, after touching record highs, have begun to lose momentum both globally and in India. Over the past few days, prices have dropped steadily, with global gold rates falling nearly 1%.
According to the Indian Bullion Association, gold in India slipped by 0.8% to ₹95,560 per 10 grams on Tuesday. Internationally, spot gold declined 0.8% to $3,314.99 an ounce, while US gold futures fell 0.7% to $3,325.10.
Experts attribute this drop primarily to improving global trade conditions and better investor risk sentiment.
Why Are Gold Prices Going Down?
The major reason behind the cooling of gold prices is easing global trade tensions.
-
US Treasury Secretary Scott Bessent recently mentioned that several major trading partners, including India, have made strong proposals to avoid US tariffs. A trade deal with India could soon be finalized, further calming market nerves.
-
China also made a significant move by exempting some American goods from tariffs, signaling a reduction in US-China trade friction.
-
Adding to the optimism, US President Donald Trump expressed positive expectations about a China-US trade agreement, while hope for a Russia-Ukraine peace deal has strengthened.
"The easing came amid the US opening tariff talks with multiple nations and growing expectations of a possible China-US trade agreement," said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.
When geopolitical and trade tensions ease, investors often move away from safe-haven assets like gold, preferring riskier investments like equities. This shift in sentiment reduces gold demand and exerts downward pressure on prices.
Earlier, gold had soared to an all-time high of $3,500.05 an ounce, driven by global economic uncertainty. However, with signs of global stabilization, attention has shifted away from gold.
Gold Market Outlook: What Happens Next?
According to Rahul Kalantri, Vice President of Commodities at Mehta Equities, gold prices initially fell on Monday due to lower demand from China. However, there was a slight rebound later as investors engaged in risk aversion and profit-taking related to the US dollar.
Kalantri also noted that geopolitical tensions, such as India-Pakistan skirmishes and attacks in Iran, temporarily increased global risk levels and pushed gold prices up. However, these gains were short-lived.
Current Support and Resistance Levels:
| Market | Support | Resistance |
| Gold (USD) | $3,310 – $3,288 | $3,360 – $3,378 |
| Gold (INR) | ₹95,450 – ₹95,080 | ₹96,750 – ₹97,290 |
| Silver (INR) | ₹95,680 – ₹94,850 | ₹97,150 – ₹97,950 |
Dr. Renisha Chainani, Head of Research at Augmont, also indicated that if gold crosses the $3,380 (approximately ₹96,400) resistance level, it could surge toward $3,435 (around ₹97,400) and potentially test the $3,500 (about ₹99,400) mark again.
Conclusion
While gold prices have cooled off from their historic highs, the future remains uncertain. Experts suggest that a new trigger — such as unexpected geopolitical tensions, economic slowdown fears, or inflation concerns — could once again drive investors towards gold.
For now, improving trade relations and reduced global uncertainty have shifted market dynamics, pushing gold off its peak. Investors should keep a close eye on global developments that could impact safe-haven demand in the coming months.