Gold prices have witnessed a significant decline, falling nearly 7.4% from their all-time high of ₹99,358 per 10 grams earlier this year. The latest figures show that June 2025 gold futures closed at ₹92,480 per 10 grams, marking a ₹7,347 decrease from the peak.
Key Market Drivers Behind the Drop
The decline in gold prices is attributed to several global economic factors:
- Easing US-China Trade Tensions: A temporary tariff reduction agreement has boosted investor confidence in equities, reducing gold’s appeal as a safe-haven asset.
- Stronger US Dollar: The US dollar index has recorded its fourth consecutive weekly gain, making gold more expensive for holders of other currencies.
- Federal Reserve’s Policy Stance: The absence of immediate interest rate cuts has dampened demand for gold as an alternative investment.
Technical Analysis and Future Outlook
Market analysts suggest that if gold prices remain below ₹94,000, the next support level could be around ₹89,500, with further declines possible toward ₹85,000.
On the international market, spot gold closed at $3,210.19 per ounce, down 0.9% for the day and over 3% for the week, marking its worst weekly performance since November 2024.
Investor Sentiment and Recommendations
Experts remain divided on whether this correction presents a buying opportunity or signals further downside. Some analysts believe that long-term investors should consider systematic buying, while others recommend waiting for market stabilization before making fresh allocations.
As global economic conditions evolve, gold prices may continue to experience volatility, with investors closely monitoring macroeconomic trends and central bank policies.
