Gold Prices Slip Across India Amid Profit Booking; Geopolitical Tensions Fail To Lift Sentiment

Mumbai, April 6: Spot gold prices extended their decline in India on Monday following last week’s correction as investors booked profits amid prevailing uncertainty over Donald Trump’s statements. Rates across all purity levels traded lower with 24K gold fetching ₹14,913 as compared to ₹15,093 per gram on Friday (losing ₹180), 22K gold ₹13,670 and 18K gold ₹11,185 per gram, respectively.

In other major cities, gold price continued to follow the national trend. In Mumbai, 24K gold is available at ₹14,913 per gram; in Delhi it is priced at ₹14,928 and Chennai trades with a premium at ₹15,066 per gram. Kolkata, Bengaluru and Hyderabad follow national price at ₹14,913 while as per Goodreturns.in, Pune priced its gold at ₹14,910 per gram.

Escalated Tensions Weaken Gold

Gold’s weakness comes at a time when geopolitical tensions escalated with Trump, who on Sunday said Iran will have until early Tuesday to reopen the Strait of Hormuz to international shipping, extending its earlier deadline by another day. Usually, geopolitical tensions send investors towards safety of gold but current uncertainties are leading investors to book profits after sharp rally earlier this year. “Bullion prices are finding it difficult to garner strength even as geopolitical tensions soar in West Asia following fresh remarks by US President Donald Trump,” the traders said.

Traders said increased geopolitical risks, which generally favour safe-haven demand for bullion, may get countered by strengthening of oil prices over inflation concerns. That apart, profit booking after sharp gains early this year will continue to cap upside for gold prices in short-term.

On Thursday, gold prices had already shown signs of fatigue, with 24-karat gold falling to ₹15,142 per gram after a prolonged rally. Analysts expect continued volatility in bullion markets as geopolitical developments and investor strategies evolve in the coming days.

Source: Goodreturns.in