Gold prices in the national capital slid by ₹1,000 to ₹1,01,520 per 10 grams on Tuesday, August 12, 2025, tracking weakness in international markets, according to the All India Sarafa Association. A day earlier, the precious metal of 99.9% purity had closed at ₹1,02,520 per 10 grams.
In local trading, gold of 99.5% purity also dropped by ₹1,000, settling at ₹1,01,100 per 10 grams, inclusive of taxes.
Market experts attributed the fall to comments from U.S. President Donald Trump, who posted on social media that there would be no tariffs on gold imports. While a formal statement from the White House is still awaited, the announcement eased concerns over potential trade restrictions. Additionally, the U.S. administration confirmed on Monday that the suspension of higher tariffs on Chinese goods will continue until November 11, temporarily calming global trade tensions.
Chintan Mehta, CEO of Abans Financial Services, said these developments put downward pressure on gold prices. On the currency front, the Indian rupee strengthened by 10 paise to 87.65 against the U.S. dollar in early trade on Tuesday.
Silver prices also took a hit in domestic markets, plunging ₹2,000 to ₹1,12,000 per kilogram, from ₹1,14,000 per kg in the previous session.
In global trade, spot gold was up 0.13% at $3,347.18 per ounce in New York, while spot silver gained nearly 1% to $37.90 per ounce.
Renisha Chainani, Head of Research at Augmont, noted that Mr. Trump’s announcement eased fears of steep import costs, pushing global prices below $3,400 per ounce. She added that investors will now shift focus to upcoming U.S. economic indicators — including the Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales data — which could offer clues about the Federal Reserve’s next interest rate moves.
Analysts believe that comments from U.S. Fed officials and the anticipated meeting between Mr. Trump and Russian President Vladimir Putin on August 15, where a potential Russia–Ukraine truce plan might be discussed, could also influence the near-term direction of bullion markets.
