Gold Below ₹1 Lakh—A Rare Dip, a Rich Opportunity

Image Source: The Economic Times

Precious metals prices were slightly down in early Tuesday trading, giving relief to bullion users after market uncertainty abroad and shifting tariff imperatives. The activity is a result of riskaverse investor attitudes as geopolitical and economic signals remain conflicting.

Major Price Movements:

The price of 24carat gold fell by ₹10, with 10 grams costing ₹98,280 in major cities like Mumbai, Kolkata, and Chennai.
In Delhi, the same quantity of 24carat gold is slightly pricier at ₹98,430.
22carat gold dropped by ₹10, now selling at ₹90,090 per 10 grams in all major cities.
Prices of silver fell by ₹100 per kg, and the metal was sold at ₹1,09,900 in Delhi, Mumbai, and Kolkata. Chennai continued to quote a premium at ₹1,19,900 per kg.

Global Cues and Market Sentiment

Gold fell 0.1% to $3,331.89 an ounce, while US gold futures held steady at $3,341.80.
The plunge comes after US President Donald Trump revealed significantly higher tariffs on US imports from Japan, South Korea, and other nations, effective from August 1.
Increases in US Treasury yield are also capping precious metal gains, which are typically safehaven investments.

Investor Sentiment:

The experts predict that the current downturn is cyclical, since volatility is bound to persist as global trade policies evolve.
Longterm investors who are interested in buying can see this as a strategic buying opportunity, particularly ahead of the wedding and festival season in India.

Sources: Business Standard, Reuters, GoodReturns, MSN India, News24 Online