New Delhi: Gold prices in India fell sharply on Friday as easing geopolitical tensions and encouraging developments in US-China trade relations triggered profit booking among investors. The correction was further supported by a drop in crude oil prices and expectations that the US Federal Reserve may delay interest rate cuts.
According to the All India Sarafa Association, the price of 10 grams of 99.9% pure gold dropped by ₹930 to ₹97,670 in the national capital. On Thursday, the yellow metal had closed at ₹98,600. Similarly, gold of 99.5% purity declined by ₹850 to ₹97,200 from ₹98,050.
Chintan Mehta, CEO of Abans Financial Services, said the absence of new geopolitical flashpoints has prompted investors to book profits in gold. “With Iran showing restraint, crude oil prices have eased, reducing overall risk sentiment and putting downward pressure on gold prices,” he noted.
Jatin Trivedi, Research Analyst at LKP Securities, said recent statements from US Federal Reserve Chairman Jerome Powell—indicating that interest rate cuts may not happen soon—also contributed to the fall in bullion prices. “With the dollar index weakening, investors are reallocating funds from gold to riskier assets such as equities and cryptocurrencies,” he added.
Silver prices also saw a marginal correction. The price of one kilogram of silver fell by ₹100 to ₹1,03,000, compared to ₹1,03,100 on Thursday.
In global markets, spot gold fell by $43.45 or 1.31% to $3,284.40 per ounce, reflecting the global shift away from safe-haven assets amid improved market sentiment.
