Gold price tanks by Rs 3,400 to Rs 96,550 per 10g

Gold witnessed a sharp decline in prices on Monday as traders shifted from safehaven buying after the United States US announced a 90day pause on tariffs against Chinese imports PTI reportedAccording to the All India Sarafa Association gold of 995 per cent purity dropped by Rs 3400 to Rs 96100 per 10 grams on Monday This marks the steepest decline in 10 months with the last major fall being Rs 3350 on July 23 2024Gold of 999 and 995 per cent purity had previously settled at Rs 99950 and Rs 99500 per 10 grams respectively on Saturday reported PTIGold prices fell sharply amid signs of progress in trade talks between the US and China along with some relief in geopolitical tensions including IndiaPakistan said Rahul Kalantri Vice President ndash Commodities at Mehta Equities LtdSilver prices also declined falling Rs 200 to settle at Rs 99700 per kilogramme against Rs 99900 recorded on SaturdayThe US following trade talks held in Geneva over the weekend agreed to reduce its 145 per cent tariff rate on Chinese goods to 30 per cent In response China consented to lower its tariffs on US goods to 10 per cent for a 90day periodMeanwhile the dollar index which gauges the greenbacks strength against a basket of six currencies is trading higher by 142 per cent at 10176 PTI reportedIn futures trading the most active gold contract on the Multi Commodity Exchange MCX dropped by Rs 3932 or 407 per cent to Rs 92586 per 10 gramsAccording to Jateen Trivedi Vice PresidentResearch Analyst Commodity and Currency at LKP Securities easing geopolitical tensions have also contributed to the selloff in gold He noted ldquoGeopolitical tensions cooled with signs of a potential truce between Russia and Ukraine and an understanding between India and Pakistan on military actionsrdquoThese developments prompted heavy profitbooking in gold which had earlier rallied amid global uncertainty Trivedi addedA robust rally in equity markets further dented goldrsquos appeal as a safehaven assetMeanwhile silver contracts for July delivery on the MCX dropped by Rs 2295 or 237 per cent to Rs 94434 per kilogrammeIn the international market spot gold tumbled over 3 per cent to USD 321870 per ounce while spot silver fell by 119 per cent to USD 3233 per ounceldquoGold dips more than 2 per cent on longliquidationprofitbooking amid easing geopolitical tensions and recovery in the greenback against major currenciesrdquo said Pranav Mer Vice President EBGCommodity amp Currency Research at JM Financial Services LtdLater this week investor attention will turn to key US macroeconomic data including inflation retail sales and consumer sentiment Markets will also be keeping an eye on the US Federal Reserve Chair Jerome Powellrsquos speech for further guidance on the interest rate trajectory Mer addedWith PTI inputsatOptionskeyd0ddb8ef8f1a62a8cdd22fac27fc5ea7formatiframeheight90width728params