Gold prices in India extended their decline on Wednesday, October 29, tracking global cues as easing US-China trade tensions dampened demand for the precious metal. The continued softness in bullion prices comes after a sharp fall earlier this week, as traders shifted focus toward riskier assets amid improving global sentiment.
Domestic Prices
According to data from Goodreturns, 24-carat gold was priced at ₹12,158 per gram, while 22-carat gold stood at ₹11,145 per gram on Wednesday. The decline reflects weakening safe-haven buying despite lingering concerns over global inflation and interest rate trends.
International Market Update
In the global market, spot gold edged up 0.2% to $3,957.42 per ounce, recovering slightly after hitting its lowest level since October 7 in the previous session.
Meanwhile, US gold futures for December delivery were last seen down 0.3% at $3,971.20 per ounce, indicating mixed investor sentiment across trading floors.
“Gold dipped due to diminishing safe-haven demand,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, adding that optimism in equity markets and stable economic data are capping gains in bullion.
Global Signals Weigh on Bullion
Market participants attributed the weakness to renewed optimism over a potential US-China trade deal, which has reduced geopolitical uncertainty.
Officials from both nations have reportedly agreed on a draft framework to pause new tariffs and relax export restrictions, signaling progress toward de-escalation.
This easing tension has encouraged investors to rotate from gold into equities, boosting risk appetite while putting downward pressure on gold prices.
Outlook
Analysts expect gold to remain under pressure in the short term as global trade sentiment improves, though any unexpected escalation in geopolitical tensions or shifts in interest rate expectations could trigger renewed demand for the metal.
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