Gold prices in India dropped sharply by Rs 1,000 to Rs 1,01,520 per 10 grams on August 12, following a global sell-off in precious metals, according to PTI. The decline came after US President Donald Trump clarified on social media that there would be no tariffs on gold imports, easing trade concerns. Additionally, the White House extended the suspension of high-level tariffs on China until November 11, reducing macroeconomic tensions.
Silver prices also slumped by Rs 2,000 to Rs 1,12,000 per kg. Globally, spot gold traded at $3,347.18 per ounce (up 0.13%), while silver gained nearly 1% to $37.90 per ounce. Investors are closely watching US economic data and possible Federal Reserve policy moves for future price direction.
City-Wise Gold Prices (per 10 grams)
- New Delhi: Rs 99,890 (down from Rs 1,01,000)
- Mumbai: Rs 1,00,070 (down from Rs 1,01,180)
- Bengaluru: Rs 1,00,150
- Kolkata: Rs 99,930
- Chennai: Rs 1,00,360 (highest among major cities)
Key Reasons for the Price Drop
- Trump’s Tariff Clarification – Eased trade concerns, lowering gold prices below $3,400 per ounce globally.
- Extended Tariff Suspension on China – Reduced macroeconomic uncertainty, pushing prices lower.
- Stronger US Dollar – Rupee appreciation to 87.65 against the US dollar reduced gold’s safe-haven appeal.
- Lower Safe-Haven Demand – Hopes for a Russia-Ukraine truce lessened investor rush to gold.
- Global Market Trends – Broader precious metal sell-off influenced domestic prices.
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