Gold Prices Drop Over Rs 3,000 per 10 Grams

SRINAGAR: Gold prices in India slipped by more than Rs 3,000 per 10 grams on Tuesday as global sentiment turned weak, pushing domestic rates sharply lower after months of robust gains. According to the Jewellers Association (IBJA), the price of 10 grams of 24-carat gold tumbled by Rs 3,034 to reach Rs 1,18,043, down from Rs 1,21,077 in the previous session, with similar declines reported for 22- and 18-carat varieties across major cities.

Analysts from SAMCO Securities, cited in multiple business updates, attributed the fall to profit-booking, renewed optimism over US-China trade negotiations, and the resultant risk-on sentiment that drove investors toward equities and away from safe-haven assets like gold. Indus Business Journal quoted Jateen Trivedi of LKP Securities, “Investor sentiment turned negative following renewed optimism about a potential US-China trade deal, with markets now focusing on the US Federal Reserve’s upcoming interest rate decision.” On the Multi Commodity Exchange (MCX), December futures for gold dropped by 1.87 percent to Rs 1,18,700, mirroring the dip in the spot market.

The trend was reinforced internationally, where gold fell nearly 2 per cent to 3,939 Dollars per ounce on Comex, hit by profit-taking and the strong performance of global equities that diminished bullion’s safe-haven appeal. Indian silver prices followed suit, plunging over Rs 3,100 to Rs 1,41,896 per kg in line with broader market corrections.

Market trackers view the current correction as an “expected and healthy” adjustment after a dramatic rally, with technical analysts warning of volatility around key support levels between Rs 1,16,500 and Rs 1,18,000 per 10 grams. Despite the slide, gold prices remain up significantly in 2025 due to central bank buying and macroeconomic uncertainty.