Gold declines Rs 1,000 to Rs 98,400/10 gm amid US-China trade deal optimism

• NEW DELHI — Gold prices declined Rs 1,000 to Rs 98,400 per 10 grams in the national capital on Monday amid weak global trend, according to the All India Sarafa Association.
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• The precious metal of 99.9 per cent purity had closed at Rs 99,400 per 10 grams on Thursday.
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• Gold of 99.5 per cent purity depreciated Rs 1,000 to Rs 97,900 per 10 grams against the previous close of Rs 98,900 per 10 grams.

Also read: Gold touches Rs 1 lakh per 10 grams for 1st time

• "Gold prices continued to decline as easing US-China trade tensions boosted investors' risk appetite, reducing demand for safe-haven assets like bullion while a stronger dollar added downward pressure on gold," Abans Financial Services' Chief Executive Officer Chintan Mehta said.
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• On Friday, China announced it would exempt some US imports from its steep 125 per cent tariffs, though it denied that any formal trade talks were underway.
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• Meanwhile, the US Federal Reserve officials signalled that they see no immediate need to adjust monetary policy, choosing instead to monitor the economic impact of the Trump administration's tariffs.
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• This hawkish stance suggests that interest rate cuts may not materialise in the near term, further weighing on gold, which typically loses appeal as a non-yielding asset when interest rates stay elevated.
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• Mehta further said, "Rising geopolitical tensions could limit gold's downside. As war risks escalate and new conflicts emerge, investors are likely to seek refuge in gold."
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• "With tensions brewing among major powers, and regional strains like the growing friction between India and Pakistan, demand for gold as a safe-haven asset is expected to rise, making it a preferred hedge against market volatility and uncertainty," he added.
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• The local bullion markets were closed on Friday due to traders' protest against the terror attack in Jammu and Kashmir's Pahalgam.
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• Additionally, silver prices also plunged Rs 1,400 to Rs 98,500 per kg on Monday. The white metal had settled at Rs 99,900 per kg in the previous session.
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• On the global front, spot gold fell nearly 1 per cent to trade at USD 3,291.04 per ounce.
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• "Gold traded weak amid the US opening tariff talks with multiple nations and growing expectations of a possible China-US trade agreement according to US President Donald Trump. Additionally, optimism around a potential Russia-Ukraine peace deal further weighed on safe-haven demand for gold," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
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• Spot silver in the Asian market hours traded 0.2 per cent lower at USD 33.05 per ounce.
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• According to HDFC Securities' Senior Analyst of Commodities Saumil Gandhi said this week traders expect the spotlight will be mostly on tariff-related developments.
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• On the macroeconomic front, US data release such as manufacturing PMI data for April, GDP data, and, most importantly, US non-farm payrolls and unemployment rates will impact the bullion market, Gandhi said.
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