In global markets, spot gold fell 0.3% to $3,346.59 per ounce, while US gold futures dipped 0.6% to $3,345.70 as of 03:12 GMT. The decline came after gold surged over 2% on Friday (May 23) following Trump’s initial threat of imposing 50% tariffs from June 1.
In India, 24K gold traded at ₹9,764 per gram, while 22K was priced at ₹8,950 per gram. 18K gold stood at ₹7,323 per gram, according to data from GoodReturns.
“There’s a bit of relief in the market after the pause on tariffs on the EU, and that’s weakening gold,” said Kyle Rodda, Financial Market Analyst at Capital.com.
“But the trend still favours gold. The U.S.’s trade moves could weigh on the dollar and drive central banks further toward gold.”
What’s driving prices?
Friday’s sharp rise in gold prices was fueled by safe-haven buying after Trump threatened sweeping tariffs and hinted at a 25% duty on Apple iPhones manufactured outside the US.
Though he walked back the move on Sunday (May 25), volatility remains.
Adding to global unease, Russia launched the largest aerial attack on Ukraine overnight, with 367 drones and missiles hitting several cities, escalating geopolitical risks and pushing investors toward safer assets like gold.
The dollar index also hit a near one-month low, making gold cheaper for non-dollar holders.
Meanwhile, SPDR Gold Trust, the world’s largest gold ETF, saw a slight dip in holdings to 922.46 tons on Friday from 923.89 tons a day earlier.
Buy on dips?
Aksha Kamboj, Vice President, India Bullion and Jewellers Association, noted that Trump’s tariff reversal may spark some profit booking, but warned against discounting gold’s long-term potential.
“The unpredictability of Trump’s trade strategy makes gold a reliable hedge. Any dip is an opportunity to accumulate for the long term,” she said.
“Currency tensions—especially the euro strengthening against the dollar—could mark the start of a currency war, which will benefit gold.”
Colin Shah, MD of Kama Jewelry, added that gold saw a 3% rise last week, driven by a weakening dollar and fiscal uncertainty in the US.
“Prices remained between ₹93,000 and ₹96,000 per 10 grams in India. Now, we expect international gold to stay within $3,300–3,400 per ounce,” said Shah.
“Domestically, gold may hover between ₹95,000–₹96,000 per 10 grams, barring any major global shock.”
Also Watch | Francisco Blanch, Head of Global Commodity & Derivatives Research at BoFA Securities, discusses the gold and silver prices in an interview with CNBC-TV18.
Should you invest now?
With central banks diversifying away from the dollar and ongoing geopolitical tensions, gold remains a compelling long-term bet.
While short-term corrections may occur, analysts believe these are buying opportunities, not exit signals.
–With inputs from Reuters