Kolkata: After kissing the Rs 1 lakh/10 gm level, the price of gold dipped on Wednesday, April 23, dropping dramatically by as much as Rs 3,316, India Bullion and Jewellers Association (IBJA) data showed. While 10 gms of the yellow metal was priced at Rs 99,100 on Tuesday, the price declined to Rs 95,784 on Wednesday, recording a dip of 3.34%. MCX data showed that dip was by 2.03% for gold contracts for June delivery. In the futures segment, the fall was by Rs 1,975 and stood at Rs 95,365 per 10 grams. Investors rushed to book profits after the gold prices hitting the psychological level of Rs 1 lakh hit headlines.
On Tuesday, April 22, the cost of the yellow metal touched Rs 99,358/10 grams. A 3% GST is applicable on gold and, therefore, the price which retail buyers coughed up for the metal was significantly above Rs 1 lakh for 10 grams. In the global markets too, gold faced a downward pressure and gold futures declined 1.91% and stood at $3,315.92/ounce in New York.
Continuing with US Fed chairman
Market analysts attributed the dip in gold futures to both Trump’s suspension of the tariff whiplash and his retreat from the threat that he held out to get rid of Jerome Powell, the chairman of the US Federal Reserve. “Gold surged near the USD 3,500 per troy ounce mark during early trade, reflecting strong bullish momentum. However, the rally was short-lived. Remarks from the US President – reassuring markets that the administration is ‘doing fine with China’ and has no plans to replace Fed Chairman Jerome Powell – triggered a wave of profit booking,” vice-president of commodities at Mehta Equities told the media.
Two statement soothed nerves on April 23. One, the US president told the media on April 22, “I have no intention of firing him.” Two, US Treasury Secretary Scott Bessent remarked that the tariff war with China is unsustainable and he expected a “de-escalation” of the situation.
Equity markets jump
Donald Trump’s assurances on the US Fed chairman and tariffs assured the markets, triggering a jump not only in the Indian market but across the Asian theatre overall. The Japanese benchmark Nikkei 225 jumped 1.9%, S&P/ASX 200 of Australia leaped 1.3%, South Korea’s Kospi surged 1.5%, Hang Seng of Hong Kong moved up 2.2% and Shanghai Composite inched up 0.2%. At 3 pm, the BSE Sensex 30 stood at 80,117.20 points, up 521.61 points or 0.66%.
A few weeks ago the reciprocal tariffs announced by US President Donald Trump rocked the global equity markets and fueled the northward march of gold prices. With the announcement of 90-day suspension of the tariff salvo and his statement on continuing with Jerome Powell as the boss of the US Fed, gold prices are now feeling a downward pressure. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
