Trump's decision and China's counterattack caused gold to fall!
On Friday, there was a stir in the indian commodity market when the june 2025 gold futures contract on MCX (Multi Commodity Exchange) fell by more than 2,800. china announced a 34 percent retaliation tariff against the US and within a few hours, the shine of gold faded.
Fall from above 90,000 to 88,130
By 7:34 pm, gold fell from 90,057 to 88,099 per 10 grams. That is, a fall of about 2.17 percent. Not only this, the global spot gold price also fell by 2.4 percent to $ 3,041.11 per ounce.
What is the reason for the fall?
Actually, the market was already prepared keeping in mind the possibility of a trade war. But as soon as the official announcement of US tariffs came, profit booking started. The impact of the trade war had been included in the prices for the last few months, so as soon as the news of tariffs was confirmed, investors started booking profits. At the same time, tensions in areas like Russia-Ukraine and the Middle east have also subsided a bit, so the demand for a "safe-haven asset" like gold may also decrease.
What is visible technically?
If seen, Comex gold is getting tremendous resistance between $3,120–3,130. And if it breaks below $3,050, then there can be a bigger fall.
Will gold become cheaper in india too?
Actually, when Trump's decision kept gold and silver out of the tariff, the supply-side concern reduced a bit. Due to this, the inventory in Comex increased and pressure started building. Now in such a situation, it is difficult for gold to stay above Rs 88,800 per 10 grams even in the domestic market and if this level breaks, then gold can come down to 87,000. At the same time, if the trend continues, then gold can fall to 84,000 per 10 grams. Its strong job report from America has made it clear that the Federal Reserve will not reduce interest rates soon this year. All these together are creating more downside pressure for gold.
click and follow Indiaherald WhatsApp channel