Gold has become cheaper, 10 grams can be bought on Rs …, reason for decline in prices is….
Gold Prices: Gold prices on the Multi Commodity Exchange opened lower on Monday morning. The decline was due to weakness in the international bullion market, as United States President Donald Trump hinted at progress on multiple trade deals and announced extended tariff relief for several countries. The price of the yellow metal on MCX opened 0.52 percent lower at Rs 96,485 per 10 grams, compared to its previous close of Rs 96,990. On the other hand, the silver price on MCX opened at Rs 1,08,124 per kg, which is 0.38 percent lower than its previous close of Rs 1,08,429
Gold Prices: What Is The Detail?
At around 9.10 am, the gold prices on MCX were trading at around Rs 490 or 0.5 percent lower, at 96,500 per kg. The prices of silver on MCX was Rs 143, or 0.13 lower at Rs 1,08,286 per kg.
If we talk about the international bullion market, the prices of the yellow metal plunged due to waning safe-haven demand. Spot gold price declined by 0.6 percent to $3,314.21 an ounce, while US gold futures fell 0.6 percent to $3,322. Spot silver price fell 0.8 percent to $36.81 an ounce.
Gold Prices: Major Reason Behind Decline In Prices
United States President Donald Trump stated that his country is pretty close to finalising several trade agreements in the coming days. He added that his government will notify other countries with higher tariff rates by the deadline, which is July 9. Notably, the higher rates will take place from August 1.
In April, President Trump initiated a 10 percent base tariff on goods from most countries, with potential additional tariffs reaching 50 percent. However, the implementation of most of these additional tariffs was delayed until July 9th, providing a three-week postponement for affected nations.
According to Jigar Trivedi, senior research analyst at Reliance Securities, the prices of the yellow metal fell as investors assessed ongoing trade developments.
“Gold prices fell as investors assessed ongoing trade developments. The possibility of a tariff extension weakened the metal’s safe-haven appeal. Meanwhile, investors now await an update on US fiscal policy, while strong labour data last week has dampened expectations of a rate cut by the Fed in July.”
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