Gold Prices Drop ₹4,300 from Record High: Is Now a Good Time to Buy?
Gold Price Update: Gold prices have fallen significantly, with MCX gold rates closing just above ₹95,000 per 10 gm on Friday, down over ₹4,300 from the all-time high of ₹99,358 per 10 gm hit on Tuesday. Internationally, spot gold ended at $3,298.20 per ounce, a $200 drop from its peak, while COMEX gold settled at $3,318 per ounce. The decline follows a sharp single-day fall of over $100 in spot gold on Wednesday.
Reasons for the Decline:
- Strong US Dollar: The US Dollar Index rebounded from a three-year low below 98, bolstered by a more conciliatory stance from President Trump toward Federal Reserve Chair Jerome Powell.
- Easing US-China Trade Tensions: Optimism for a trade thaw has reduced gold’s safe-haven appeal. China’s reduction of a 145% tariff on select US products and signals of tariff cuts from the US have boosted risk appetite, diverting investment to riskier assets.
Expert Insights:
- Jateen Trivedi, LKP Securities: Gold is under pressure due to trade optimism and a stronger dollar. If COMEX gold breaks below $3,300 decisively, further declines are possible, driven by tariff policy news.
- Sugandha Sachdeva, SS WealthStreet: Lower levels around ₹93,500 per 10 gm ($3,250/oz) may attract buying ahead of Akshaya Tritiya (April 30, 2025), a key gold-buying festival in India. However, breaking above ₹99,500–₹1,00,000 ($3,500/oz) seems unlikely without new catalysts.
Is It Time to Buy? Experts suggest caution but see potential opportunities:
- Support Levels: MCX gold has support at ₹93,500 and ₹89,500 per 10 gm. These levels could see buying interest, especially with festival demand approaching.
- Resistance: The ₹99,500–₹1,00,000 zone remains a strong barrier, limiting significant upside in the near term.
- Key Triggers: Upcoming US economic data (Q1 GDP, PCE inflation, April non-farm payrolls) will influence gold prices. Geopolitical uncertainty may provide support, but trade optimism and a stronger dollar could cap gains.
Advice for Investors: Monitor US-China trade developments and US economic data closely. Buying at lower support levels (₹93,500 or below) could be strategic ahead of Akshaya Tritiya, but significant rallies may require fresh catalysts. Avoid chasing highs near ₹99,500 unless new risks emerge.
Gold Prices Today (per 10 gm, per IBA):
- Delhi: ₹94,930
- Mumbai: ₹95,090
- Bengaluru: ₹95,170
- Chennai: ₹95,370
- Kolkata: ₹94,970
