SRINAGAR: Gold prices in the national capital declined for the fourth consecutive session on Monday, slipping Rs 500 to settle at Rs 98,020 rupees per 10 grams. The drop was attributed to continued selling by stockists following a new trade agreement between the US and the European Union, which reduced demand for safe-haven assets.
As per All India Sarafa Association, gold of 99.9% purity was quoted at 98,520 per 10 grams, down Rs 600 from Saturday’s close. Meanwhile, gold with 99.5% purity also extended its losses, dropping Rs 500 to Rs 97,750 per 10 grams, compared to Rs 98,250 in the previous session.
Silver prices followed a similar trend, falling Rs 1,000 to Rs 1,13,000 per kilogram on Monday, down from Rs 1,14,000 on Saturday.
In international markets, spot gold and silver were mostly flat, trading at USD 3,337.95 and USD 38.17 per ounce, respectively.
“Gold traded in a narrow but positive range around USD 3,335 per ounce last week, though gains were capped by strength in the US dollar index,” said Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities.
The market reaction followed the announcement of a trade deal between the US and the EU. The agreement includes a 15% tariff on most European goods entering the US and a pledge by the EU to invest hundreds of billions of dollars in American industries. The deal mirrors a recent trade pact between the US and Japan
Chintan Mehta, CEO of Abans Financial Services, noted that investors will be closely monitoring upcoming US economic indicators, including jobless claims and second-quarter GDP data, which could influence market sentiment.
Saumil Gandhi, Senior Commodities Analyst at HDFC Securities, said that gold prices have remained stagnant as investors adopt a cautious stance amid improving trade sentiment and a firm US dollar.
“Precious metal prices declined last week due to reduced demand for safe-haven assets as tariff concerns eased,” Gandhi said. Besides, president Donald Trump’s efforts to downplay tensions with Federal Reserve Chair Jerome Powell helped calm market nerves about the Fed’s independence.”
He added that the strengthening US dollar, now rising for the third consecutive day continues to put downward pressure on gold and silver prices.
