Precious metals witnessed a sharp decline on Monday as global market sentiment shifted away from safe-haven assets following encouraging signals from U.S.-China trade talks and a firm U.S. dollar. On the Multi Commodity Exchange (MCX), gold futures for June delivery fell by 2.25%, or Rs 2,169, settling at Rs 95,500 per 10 grams. Silver futures for May delivery also declined, dropping 0.6% or ₹585, to close at Rs 96,221 per kilogram.
The dip in prices comes as investors responded to renewed optimism in the global trade environment. Spot gold prices dropped 1.4% to $3,277.68 per ounce in early Asian trade, while U.S. gold futures slipped 1.9% to $3,281.40. The shift follows reports that U.S. and Chinese negotiators reached a “key consensus” during weekend trade discussions in Switzerland. A joint statement is expected to be released by Chinese Vice Premier He Lifeng later Monday.
Jigar Trivedi, Senior Commodity Analyst at Reliance Securities, attributed the decline 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 weighed on gold prices,” Trivedi said.
The developments mark a stark contrast from last week, when gold and silver prices surged amid rising tensions between India and Pakistan and a surprise rate cut by the Bank of England. Gold had touched $3,344 per troy ounce and silver tested $33 per troy ounce in international markets, supported by safe-haven demand.
Manoj Jain, Director at India Nivesh, noted that volatility remains a key theme. “Prices rebounded sharply last week due to the Indo-Pak conflict and global rate cuts, but positive trade developments between the U.S. and China are now limiting further upside. We expect volatility to persist in the short term,” he said.
City-wise Retail Gold Prices in India (May 12, 2025):
- Mumbai: 24K gold at Rs 9,867/gm, 22K gold at Rs 9,044/gm
- Delhi: 24K gold at Rs 9,882/gm, 22K gold at Rs 9,059/gm
- Chennai: 24K gold at Rs 9,867/gm, 22K gold at Rs 9,044/gm
- Kolkata: 24K gold at Rs 9,867/gm, 22K gold at Rs 9,044/gm
- Bengaluru: 24K gold at Rs 9,867/gm, 22K gold at Rs 9,044/gm
- Ahmedabad: 24K gold at Rs 9,867/gm, 22K gold at Rs 9,044/gm
Market Outlook:
Despite the recent dip, analysts expect gold and silver to remain volatile, with geopolitical risks, U.S. inflation data, and central bank policies all influencing prices. Gold has technical support at $3,180 and resistance at $3,400 per ounce, while silver could trade between $31.40 and $33.66 per ounce. Domestically, MCX gold is supported at Rs 95,550 and faces resistance at Rs 97,450. Silver support is seen at ₹95,350 with resistance at Rs 98,200.
Traders are advised to watch for further cues from the upcoming U.S. Consumer Price Index data and central bank commentary later this week.
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
