Gold Slips Below Rs 91,000 Amid Weak Domestic Demand, Silver Prices Rise
Gold prices in the national capital declined sharply by Rs 1,050 on Wednesday, settling at Rs 90,200 per 10 grams due to weak demand from stockists and retail buyers. According to the All India Sarafa Association, the price of 99.9 percent pure gold had closed at Rs 91,250 per 10 grams in the previous session.
Gold of 99.5 percent purity also dropped by Rs 1,050 to Rs 89,750 per 10 grams, compared to Tuesday's closing of Rs 90,800.
In contrast, silver prices showed an upward trend, gaining Rs 500 to reach Rs 93,200 per kilogram, up from Rs 92,700 in the previous session.
As per agency report, international markets painted a different picture, with spot gold surging by $61.98 or 2.08 percent to $3,044.14 per ounce. Analysts attributed this rise to growing fears of a global economic slowdown amid escalating trade tensions between the United States and China, which in turn boosted demand for safe-haven assets like gold.
President Donald Trump’s decision to impose additional tariffs on Chinese imports, taking the total to 104 percent, prompted China to retaliate by raising its own tariffs on American goods from 34 percent to 84 percent, effective from April 10. This tit-for-tat response has intensified concerns over a full-scale trade war between the two economic giants.
HDFC Securities senior commodities analyst Saumil Gandhi noted that these developments have triggered a flight to safety, driving gold prices toward the $3,030 mark globally. He also pointed out that pressure on the US dollar, which fell for the second consecutive day, further supported gold prices.
In the Asian market, spot silver witnessed a near two percent gain, reaching $30.41 per ounce.
Chintan Mehta, CEO of Abans Financial Services, commented that investors will continue to monitor Trump’s evolving tariff strategy and its broader economic implications. He added that market participants are also closely watching the upcoming minutes from the US Federal Open Market Committee (FOMC) meeting and fresh US inflation data, which could offer further insights into how the central bank plans to respond to rising trade-related risks.
