Gold prices are down today: Here we decode why
What's the story
Gold prices fell today, as easing trade tensions between the US and China have reduced safe-haven demand for the precious metal.
Spot gold slipped 0.4% to $3,234.32 an ounce, while US gold futures fell 0.3% to $3,237 per ounce.
Kyle Rodda, a financial market analyst at Capital.com, said positive developments in US trade policy are diminishing gold's short-term appeal.
Analysis
Easing trade tensions impact gold's appeal
Rodda noted that $3,200 is a critical support level for the precious metal. The change in sentiment comes as the US cut tariffs on low-value Chinese imports and President Donald Trump ruled out restoring high tariffs, indicating progress in trade negotiations.
Indian market
Domestic gold prices remain stable
In India, gold prices have remained unaffected by the global trend.
Price of 24K gold is ₹9,661 per gram, while 22K and 18K gold are priced at ₹8,856 and ₹7,246 per gram, respectively.
Jateen Trivedi, VP of Research at LKP Securities said mutual tariff rollbacks have reduced safe-haven demand but ₹93,000 per 10g remains a strong support level with ₹95,000/10g being the next resistance.
Perspective
Gold's strong performance amid global uncertainties
Despite the recent dip in prices, Vaibhav Porwal, Co-Founder of wealth management start- up Dezerv, remains bullish on gold as an investment.
He noted that gold has doubled over the last five years and continues to be a hedge against currency volatility and geopolitical risks.
Porwal noted three important factors driving gold's strength: global tensions, recession fears in the US, and a weakening Dollar.