Gold Prices Experience Significant Drop

Gold prices have seen a sharp decline, dropping by Rs 1,000 to Rs 98,400 per 10 grams in the national capital. This downturn is attributed to weak global trends, as reported by the All India Sarafa Association. The previous close for 99.9% pure gold was Rs 99,400 per 10 grams.

Local Markets React to Global Events

Local bullion markets were closed last Friday due to a protest against the terror attack in Pahalgam, Jammu and Kashmir. Chintan Mehta, CEO of Abans Financial Services, noted that the easing of US-China trade tensions has boosted investors' risk appetite, reducing demand for safe-haven assets like gold.

Geopolitical Tensions and Economic Indicators

Despite the current decline, rising geopolitical tensions may limit gold's downside. Mehta highlighted the growing strains between India and Pakistan as potential factors that could bolster safe-haven demand for gold.

Looking Ahead

The market is now keenly awaiting further developments in US-China trade discussions, statements from US Fed officials, and key US economic data, which are expected to influence bullion prices in the near term.