Gold prices fell by ₹500 on Monday to ₹98,020 for 10 grams in Delhi, marking the fourth day in a row of falling prices. This drop comes as demand for gold decreased after a trade agreement between the US and the European Union reduced fears over tariffs. The data was shared by the All India Sarafa Association.
On Saturday, gold with 99.9% purity was priced at ₹98,520 for 10 grams. On Monday, gold with 99.5% purity fell to ₹97,750 (including all taxes), according to PTI.
Silver also saw a sharp fall, dropping by ₹1,000 to ₹1,13,000 per kilogram, down from ₹1,14,000 in the previous session.
Globally, prices for gold and silver remained mostly flat. Spot gold was at $3,337.95 per ounce, while silver stood at $38.17 per ounce.
Jateen Trivedi, a research analyst at LKP Securities, explained that even though gold traded slightly higher, its growth was limited because of the strong US dollar.
The US-EU trade deal, which adds a 15% tax on many European goods entering the US while the EU promises to invest more in American industries, has made investors less worried and reduced demand for gold as a safe investment.
A similar deal was recently signed between the US and Japan.
Saumil Gandhi from HDFC Securities said gold prices dropped last week as people moved away from safe-haven assets due to lower tariff concerns.
Chintan Mehta, CEO of Abans Financial Services, said investors are now watching for key US economic data like jobless claims and GDP numbers.
Also, US President Donald Trump’s recent supportive comments about the Federal Reserve and its chairman have helped strengthen the US dollar. Gandhi noted that the dollar has gone up for the third day in a row, which is putting pressure on gold and silver prices.
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