New Delhi, Apr 9 (PTI) Gold prices plunged Rs 1,050 to Rs 90,200 per 10 grams in the national capital on Wednesday due to poor offtake by stockists and retailers, according to the All India Sarafa Association.
The yellow metal of 99.9 per cent purity had closed at Rs 91,250 per 10 grams in the previous market close.
Gold of 99.5 per cent purity depreciated Rs 1,050 to Rs 89,750 per 10 grams against the Tuesday’s close of Rs 90,800 per 10 grams.
However, silver prices climbed Rs 500 to Rs 93,200 per kg. The white metal had settled at Rs 92,700 per kg on Tuesday.
Meanwhile, spot gold increased USD 61.98, or 2.08 per cent, to USD 3,044.14 per ounce in the overseas markets.
“Gold reclaimed the USD 3,030 level as fears of a full-fledged global trade war plunging the world economy into recession reignited demand for safe-haven assets,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
President Trump has imposed additional tariffs on China, which now faces a 104 per cent levy, with Beijing vowing to retaliate, announcing it would raise the tariff on US goods to 84 per cent, escalating the trade conflict between the world’s two largest economies.
The countermeasures by China will be effective on April 10. This latest development raises concerns about the possibility of a full-blown trade war with the United States.
Further, Trump’s tariff policy continued to weigh down on the US dollar, which declined for the second straight day, further benefiting the gold prices, Gandhi said.
Spot silver in the Asian market hours quoted nearly 2 per cent higher at USD 30.41 per ounce.
According to Abans Financial Services’ Chief Executive Officer Chintan Mehta, investors will be watching Trump’s evolving tariff strategy and its broader economic implications.
Market participant will also be closely watching the US Fed’s Federal Open Market Committee (FOMC) meeting minutes and upcoming US inflation data, which could offer more clues on how the central bank may respond to escalating trade risks, Mehta said.
