Why Gold Prices Dropped Over 1% in International Market?

On Monday, April 28, 2025, gold prices saw a significant drop as easing tensions between the US and China improved investor sentiment, leading to reduced demand for safe-haven assets. Spot gold fell 1.4%, closing at $3,272.89 per ounce by 0220 GMT, down from its record high of $3,500.05 per ounce on April 22. Likewise, US gold futures decreased by 0.4%, settling at $3,283.70 per ounce.

In India, gold prices mirrored the global trend. The price of 24-karat gold is currently ₹98,200 per 10 grams, while 22-karat gold is priced at ₹90,010 per 10 grams. 18-karat gold is available for ₹73,650 per 10 grams.

Why Did Gold Prices Saw Major Drop Today?

• The strengthening of the US dollar exerted additional pressure on gold prices. The dollar index climbed by 0.3%, making gold more expensive for international buyers.
• Rising optimism surrounding a potential US-China trade agreement diminished gold’s appeal as a safe-haven investment.

Gold Price Returns This Year

Gold has surged over 30% this year in both domestic and global markets, driven by a decline in confidence in dollar assets, stemming from Trump’s aggressive tariffs and ongoing uncertainty over his trade policies. This increased demand for traditional safe-haven commodities like gold.

Also Read: Why Gold Prices Touched a New Record High in International Market?

The US introduced a universal 10% baseline tariff on all imports, with additional tariffs imposed on specific countries, including China, Vietnam, Japan, India, South Korea, and the European Union. These tariffs are largely aimed at addressing trade imbalances.

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