Gold prices in Bangalore saw a sharp correction on April 7, following an intense rally driven by global economic uncertainty. After consistently touching record highs, the 22-carat gold rate dropped by Rs 250 per 10 grams, now priced at Rs 82,850, while 24-carat gold fell by Rs 280, bringing it to Rs 90,380 per 10 grams. 18-carat gold also declined by Rs 200, now retailing at Rs 67,790 per 10 grams.
This downward adjustment comes after Friday’s dramatic dip of nearly Rs 16,000 per 100 grams, prompting investors to reassess their strategies amid heightened global trade tensions. The volatility is largely attributed to sweeping new tariffs imposed by former U.S. President Donald Trump, sparking a sell-off in equity markets worldwide. As a result, investors had previously turned to gold as a safe-haven asset.
Market analysts, however, believe the current dip is temporary. Manav Modi, Senior Analyst at Motilal Oswal Financial Services, noted that gold and silver dropped over 3% last week due to widespread sell-offs as investors scrambled to offset equity market losses. Despite the fall, Modi expects a potential rebound as trade tensions continue and global inflation risks mount.
Meanwhile, silver prices in Bangalore remained steady at Rs 94,000 per kilogram, or Rs 9,400 per 100 grams.
💹 Gold and Silver Futures on MCX
On the Multi Commodity Exchange (MCX), gold futures maturing on June 5 were trading at Rs 88,300, up 0.26%, while silver futures maturing May 5, 2025, jumped 1.83%, reaching Rs 88,589.
🌍 Spot Market Trends
Globally, spot gold slipped to USD 3,025.17 per ounce, down USD 11.80 (0.39%), while spot silver gained ground at USD 30.16 per ounce, up 1.91%. Analysts suggest that recession fears, rising inflation, and escalating trade wars will continue to influence bullion prices in the coming weeks.
As the RBI’s interest rate decision and key U.S. inflation data loom, investors are advised to watch the markets closely. With over 50 countries engaging in trade talks following the U.S. tariff announcement, volatility is expected to persist.
