Gold prices crash to ₹95,625, down nearly 5.6% from all-time high

Gold prices in India dropped sharply from the all-time high of ₹1,01,275 to ₹95,625 per 10 grams in Ahmedabad on Monday. This marks a decline of approximately 5.6% from the peak.

On the Multi Commodity Exchange (MCX), gold also saw a dip, closing at ₹92,389 in the previous session. Meanwhile, international gold prices are currently at $3,288.67 per ounce as of 6:00 PM (IST).

The recent fall comes after the U.S. Federal Reserve signalled that it is in no hurry to cut interest rates. The Fed noted that the U.S. economy remains stable and inflation is still a concern. As a result, gold prices remained mostly flat last week but are now starting to react to the central bank's stance.

Gold prices reduced drastically following a breakthrough in U.S.–China trade talks held in Geneva. In a significant move, both countries agreed to mutually reduce tariffs by 115%, easing tensions in what had become a prolonged trade war between the world’s two largest economies.

Under the new terms, tariffs on Chinese goods entering the U.S. have been slashed from 145% to 30%, while China has reduced its tariffs on U.S. imports from 125% to 10%. This agreement marks a turning point in economic relations and ends a phase of heightened tariff conflicts that began after President Donald Trump took office. These Geneva discussions were also the first high-level in-person talks between U.S. and Chinese officials since Trump resumed office.

The White House, in an official statement, said the deal recognises the importance of maintaining a sustainable and mutually beneficial trade relationship, not only for both countries but also for the stability of the global economy.

Dr. Renisha Chainani, Head- Research, Augmont, said, "Trade discussions with US officials are an important first step in stabilising bilateral trade relations, according to China's Vice Premier He Lifeng. The two parties also achieved "substantial progress," according to US Treasury Secretary Scott Bessent."

Chainani said, "The sellers would be able to regain control, at least temporarily, if tensions were to decrease or some tariffs were to be lowered. Additionally, the fact that gains have now paused twice in the mid-$3400 (~Rs 97000) range suggests that the rally may be nearing its short-term exhaustion. Gold prices may drop to $3200 (~Rs 92000) if they remain below $3365 (~Rs 94000) this week. And we are expected to see a $200 decline from those levels up to $3000 (~Rs 86000) if prices break and hold below $3200, which is the Double Top formation's neckline support."

Despite this easing of tensions, market sentiment remains cautiously optimistic. A stronger U.S. dollar and ongoing global uncertainties may continue to put pressure on gold in the short term.