Gold prices continued to face selling pressure for the second consecutive week as easing tensions in the US-China trade dispute and a stronger US dollar dampened safe-haven demand for the yellow metal. On the Multi Commodity Exchange (MCX), gold closed at ₹92,700 per 10 grams on Friday, marking a sharp decline of ₹6,658 from its recent all-time high of ₹99,358. Despite this downward trend, gold witnessed a rebound during the weekend session, closing near ₹93,000 after hitting a weekly low of ₹92,055.
In the international market, spot gold ended the week at $3,240.88 per ounce, while COMEX gold settled at $3,257 per troy ounce. The recovery was attributed to growing market uncertainty around global trade negotiations, which reignited some investor interest in gold as a safe-haven asset.
Trade Sentiment and Dollar Strength Impacting Gold
Market analysts highlight that the rebound in the US Dollar Index, following news of potential tariff cuts on Chinese imports by the White House, played a crucial role in pressuring gold prices. The index bounced back after dipping below the 98 mark, curbing gold’s appeal as an alternative investment.
“Gold prices staged a strong comeback on Friday, gaining ₹950 to trade at ₹93,325 on MCX,” said Jateen Trivedi, Vice President – Research at LKP Securities. “Support for COMEX gold near $3,200 signaled a temporary stabilization in investor sentiment. Although trade negotiations continue, the lack of decisive outcomes is pushing some traders to cover short positions in gold.”
Market Factors Behind Price Correction
According to Sugandha Sachdeva, Founder of SS WealthStreet, the recent decline in gold prices is primarily linked to reduced geopolitical tension and improved investor sentiment across global markets. “Positive developments in trade talks between the US and several key economies, including Japan, South Korea, and India, have lifted risk appetite, undermining the need for safe-haven assets,” she noted.
Additionally, the appreciation of the Indian rupee—up over 1% during the week—has contributed to the softness in domestic gold prices. Strengthened by robust foreign portfolio investments and exporter-driven dollar sales, the rupee briefly crossed the 84 mark against the US dollar.
Investment Opportunity or Further Correction?
Despite the recent dip, experts suggest that gold may be forming a support base around ₹91,700 per 10 grams and $3,200 per ounce. “Concerns over the US economy, which saw a 0.3% contraction in the first quarter of 2025, coupled with subdued inflation as reflected in the flat PCE price index for March, may prompt the US Federal Reserve to consider interest rate cuts in the coming months,” Sachdeva added. “These factors could provide a renewed tailwind for gold.”
Trivedi expects heightened volatility in the near term, with gold likely to trade in a broad range of ₹92,000 to ₹94,500 on MCX. Meanwhile, Sachdeva sees a consolidation phase emerging, with key resistance around ₹96,500 and support near ₹91,700.
Key Triggers Ahead
Looking forward, several domestic and international factors are poised to influence gold’s trajectory. Among them are the rupee’s movement against the dollar, US economic data such as the ISM non-manufacturing PMI, and the outcomes of the upcoming Federal Reserve policy meetings. Any developments in global tariff negotiations will also be closely watched by gold traders.
Gold Prices in Indian Cities
As per the India Bullions Association (IBA), gold prices across major Indian cities on Saturday were:
- Delhi – ₹92,650/10 gm
- Mumbai – ₹92,810/10 gm
- Bengaluru – ₹92,890/10 gm
- Chennai – ₹93,080/10 gm
- Kolkata – ₹92,690/10 gm
With gold prices stabilizing at lower levels, many investors are evaluating whether this dip offers a potential entry point, especially with economic and geopolitical uncertainties still lingering.
