Image used for representational purpose.
| Photo Credit: Siddhant Thakur
Gold prices took a U-turn from the historic ₹1 lakh-mark and declined ₹2,400 to ₹99,200 per 10 gram in the National Capital on Wednesday (April 23, 2025) amid weak global trend.
According to the All India Sarafa Association, the precious metal of 99.9% purity spurted by ₹1,800 to hit the lifetime peak of ₹1,01,600 per 10 grams on Tuesday.
Gold of 99.5% fall sharply by ₹3,400 to ₹98,700 per 10 grams on Wednesday, a day after jumping ₹2,800 to an all-time high of ₹1,02,100 per 10 grams in the local markets.
“Gold prices corrected after reaching record highs, as safe-haven demand softened following President Donald Trump’s comments that the steep tariffs on Chinese goods imposed during the trade war escalation will soon be substantially reduced,” Abans Financial Services’ Chief Executive Officer Chintan Mehta said.
Meanwhile, silver prices jumped ₹700 to ₹99,200 per kg on Wednesday. The white metal had closed flat at ₹98,500 per kg in the previous session.
On the Multi Commodity Exchange (MCX), gold futures for June delivery dipped ₹1,435 or 1.47% to ₹95,905 per 10 grams. It rose to touch a record high of ₹99,358 per 10 grams in the previous market close.
In addition, the price of August contract depreciated by ₹1,330 or 1.36% to ₹96,669 per 10 grams against the previous close of ₹1,00,000 per 10 grams, also its historic high on the MCX.
“Gold prices witnessed sharp weakness. This marks a steep sell-off since April 3, signalling a possible short-term reversal from recent peaks,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
As tariff concerns ease, gold is seeing some premium unwinding. Looking ahead, gold is expected to trade in a broad range between ₹94,000–98,000 per 10 grams, with elevated volatility likely to persist, Mr. Trivedi added.
In the global markets, spot gold retreated from the record level to trade at $3,330.99 per ounce, down by $50.37 or 1.49%. On Tuesday, the spot gold rose to hit a fresh high of $3,500.33 per ounce.
“…Gold extended its decline on Wednesday, dropping to $3,316 per ounce, as Trump clarified he would not fire Fed Chair Powell, which helped restore confidence in the Fed’s independence and further eased investor anxiety,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.
Spot silver in the Asian market hours rose 1.19% to $32.90 per ounce.
According to HDFC Securities’ Senior Analyst of Commodities Saumil Gandhi, traders are now looking forward towards the release of macroeconomic data, such as global flash PMIs and U.S. new home sales to be released later on Wednesday.
Infinity Money’s Founder Vinayak Mehta said the international market of the precious metal has always been a lucrative asset class during testing times.
As U.S. puts trade sanctions on different countries, the central bank and hedge funds are moving towards safe heaven…thereafter, the gold prices on Wednesday have touched a high of $3,500 per ounce.
“We don’t see a sign of correction yet till the trade war situation normalises,” Mr. Mehta said.
Published – April 23, 2025 06:01 pm IST