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Gold rate today: Gold prices drop by over Rs 2,200 per 10 grams on India-Pakistan ceasefire, US-China trade talks
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It’s important to note that the script described in the stoner’s query, where gold prices in India drop by over Rs 2,200 per 10 grams due to an India- Pakistan ceasefire and US- China trade addresses on Tuesday, May 13, 2025, is a academic situation grounded on events that passed on Monday, May 12, 2025.
On Monday, May 12, 2025, gold prices in India did indeed substantiation a significant drop, told by the factors mentioned. News of a ceasefire agreement between India and Pakistan, following a period of heightened pressures, and growing sanguinity girding US- China trade accommodations led to a drop in the demand for safe- haven means like gold.
factual Gold Price Movement on Monday, May 12, 2025( as per available reports)
MCX Gold Futures( June 2025 expiry) Saw a decline of over Rs 2,200- Rs 2,424 per 10 grams. Prices fell from the former ending of around Rs 96,518 to an intraday low of roughly Rs 94,094- Rs 94,294 per 10 grams.
24 Carat Gold( 10 grams) Prices dropped by around Rs 1,800.
22 Carat Gold( 10 grams) Prices fell by roughly Rs 1,650.
Gold Rate moment( Tuesday, May 13, 2025)
As of Tuesday, May 13, 2025, gold prices have shown a slight recovery after the significant drop on the former day.
According to Goodreturns.in
24 Carat Gold ₹ 95,620 per 10 grams( an increase of ₹ 160 from the former day)
Carat Gold ₹ 87,650 per 10 grams( an increase of ₹ 150 from the former day)
According to Tanishq
22 Carat Gold ₹ 87,900 per 10 grams( an increase of ₹ 2,950 from the former day’s lower rate)
According to the Indian Express
24 Carat Gold( Delhi) ₹ 9,577 per gram( ₹ 95,770 per 10 grams)
Carat Gold( Delhi) ₹ 8,780 per gram( ₹ 87,800 per 10 grams)
It’s apparent that while there was a substantial drop on Monday, the request saw some stabilization and a slight upward movement on Tuesday.
Factors impacting Gold Prices
The significant drop in gold prices on Monday, May 12, 2025, and the posterior slight recovery were primarily driven by the interplay of several factors
Geopolitical Pressures( India- Pakistan Ceasefire) Gold is frequently considered a safe- haven asset, meaning investors tend to flock to it during times of geopolitical query or conflict. The easing of pressures between India and Pakistan due to the reported ceasefire reduced the demand for this safe- haven asset, leading to a price decline.
US- China Trade Addresses Optimism girding progress in trade addresses between the United States and China also contributed to the downcast pressure on gold. Positive developments in trade relations tend to boost investor confidence in the global frugality, leading them to shift towards unsafe means like equities, thereby reducing the appeal of safe- haven means like gold.
Global profitable Sentiment Overall global profitable sentiment plays a pivotal part in determining gold prices. Positive profitable data and vaticinations can reduce the demand for gold, while profitable downturns or fears of recession can increase its appeal.
Currency oscillations( USD) The value of the US bone has an inverse relationship with gold prices. A stronger US bone generally makes gold more precious for holders of other currencies, potentially leading to dropped demand and lower prices. Again, a weaker bone
can make gold more seductive.
Interest Rates Interest rate opinions by major central banks, particularly the US Federal Reserve, can impact gold prices. Advanced interest rates can increase the occasion cost of holdingnon-yielding means like gold, potentially leading to a drop in demand.
Demand and force The abecedarian profitable principle of force and demand also affects gold prices. Factors similar as jewelry demand, artificial use, and investment demand play a part. Seasonal demand during carnivals and marriage seasons in India, for illustration, can impact original gold prices.
Affectation Gold is frequently considered a barricade against affectation. Rising affectation can lead investors to buy gold to save their purchasing power, driving up prices. Again, low affectation can reduce this demand.
Gold Prices Dip Amid bettered Geopolitical Climate
On May 12, 2025, Golden June futures on the Multi Commodity Exchange( MCX) fell by ₹ 2,224 or 2.3, trading at ₹ 94,294 per 10 grams. This marked a significant drop from the record high of ₹ 99,358 per 10 grams observed on April 22, 2025.
US- China Trade Addresses Positive issues from the US- China trade conversations, including a 90- day agreement to reduce tariffs, bolstered global request confidence, farther reducing the demand for gold.
Impact on Indian requests
The drop in global gold prices on Monday had a direct impact on the Indian gold request. The Multi Commodity Exchange( MCX), which is a major platform for commodity trading in India, reflected these global trends. The strengthening of the Indian Rupee against the US bone
can also contribute to lower domestic gold prices, as it makes significances cheaper.
For Indian consumers, a drop in gold prices can be seen as a buying occasion, particularly for those planning marriages or investing in gold for the long term. still, it’s important to note that gold prices are unpredictable and can change grounded on a variety of global and domestic factors.
Conclusion
The significant drop in gold prices in India on Monday, May 12, 2025, was a direct consequence of easing geopolitical pressures between India and Pakistan and renewed sanguinity girding US- China trade addresses, both of which reduced the demand for safe- haven means.
While there was a considerable fall, the request showed some signs of stabilization and slight recovery on Tuesday, May 13, 2025. Gold prices are told by a complex interplay of global profitable, political, and social factors, making it a dynamic and nearly watched asset class. Investors and consumers should stay informed about these factors to make informed opinions regarding gold.
