Delhi, 12 May (H.S.): A downward trend is observed in the gold and silver markets today. On the Multi Commodity Exchange (MCX), gold has fallen below ₹94,000 per 10 grams, marking a five-day low, while silver’s price has dropped under ₹96,000 per kilogram. Similarly, on COMEX, gold is priced below $3,280 per ounce, with silver dropping below $33 per ounce. Market analysts suggest that the U.S.-China trade deal may diminish gold’s appeal as a ‘safe haven’ investment.

Previously, geopolitical tensions and President Donald Trump’s tariff policies drove investments into gold. Now, with signs of easing tensions – such as the trade agreement between the U.S. and China, a truce between India and Pakistan, and potential resolutions in the Russia-Ukraine conflict – the demand for gold is waning. Rajeev Dutta, CEO of Capex Gold and Investments, notes that demand for gold typically rises during global tensions but decreases as conditions improve. Recent international instability had led investors to see gold as a secure option; however, optimism about reduced tensions is affecting the market. While Dutta believes gold may remain resilient in the long term, short-term prospects indicate a loss of allure for the metal. He anticipates that once market stability returns, an upward trajectory in gold prices is likely.

Hindusthan Samachar / Jun Sarkar