Quote on Gold by Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities
Below the Quote on Gold by Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities
"Gold Crashes Rs.4,000 FIRST TIME AFTER 23JULY INDIAN BUDGET DISCOUNT day as US-China Tariff Rollback Eases Global Tensions
and India Pakistan Ceasefire along with Russia Ukraine truce.
Gold prices plunged sharply by approximately Rs.4,000 to Rs.92,500 on the MCX, following a significant de-escalation in global trade tensions. The U.S. and China agreed to lower tariffs—by 10% on U.S. products and 30% on Chinese goods—for a 90-day period to facilitate continued trade negotiations. This announcement triggered a sharp rally in the dollar index, which surged above $101.50, eroding the appeal of gold as a safe-haven asset.
In addition to the tariff relief, geopolitical tensions cooled with signs of a potential truce between Russia and Ukraine, and a ceasefire agreement between India and Pakistan. These developments led to heavy profit booking in gold, which had previously rallied on global uncertainty.
Technically, gold now faces immediate resistance in the ?94,000–?95,000 range, while the next major support lies at Rs.90,000. With safe-haven demand fading, further downside cannot be ruled out if global risk sentiment remains stable."
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