New Delhi [India], May 14 (ANI): Gold prices dipped lower on Wednesday, following easing trade tensions between China and the United States, which led to a decline in safe-haven demand.
At 09:53 am IST, MCX June gold futures were trading at Rs 93,321 per 10 grams (or ounce), showing a decrease of Rs 326 from the previous close.
Since US-China trade deal, gold has declined nearly 3%.
Among other metals, June silver futures shed Rs 522, to trade at Rs 96,245 per kg.
“Positive developments in US trade policy (are) diminishing the appeal of gold in the short-term,” Capital.com’s financial market analyst Kyle Rodda told Reuters.
“I think that if we see continued progress in trade negotiations and deals being done between the US and its trading partners, gold can pull back further.”
The US and China have arrived at an agreement that they will withdraw their previously announced reciprocal tariffs and counter tariffs for an initial period of 90 days. The tariffs for 90 days are reduced by 115 per cent, by both US and China against each other.
China will impose 10 per cent tariffs on US goods, and the US will tax Chinese goods at about 30 per cent.
In the United States, traders are waiting for the US Producer Price Index data, which is coming on Thursday, for clues regarding the Fed’s interest rate path, which could affect Indian gold prices as well. Meanwhile, the market expects 53 basis points of rate reduction this year, beginning in September.
Non-yielding bullion is often seen as a safeguard against inflation and is likely to flourish during the time of low-interest rates.
Meanwhile, the inflation data released by the Ministry of Statistics and Programme Implementation on Tuesday, retail inflation in India in April fell to 3.16 per cent from 3.34 per cent in March.
Last month, according to the World Gold Council, safe-haven gold’s demand, in volume terms, dropped in Indian markets in the January-March quarter of 2025, due to an unprecedented rise in its prices. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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