Gold Plummets to Two-Week Low Amid Dollar Surge and Tariff Impacts

Gold prices in the national capital fell by Rs 500 to a two-week low of Rs 87,700 per 10 grams due to a strong dollar bolstered by new US tariffs on Mexico, Canada, and China. Silver prices also declined significantly, influenced by the strengthened dollar and investor profit-taking.

In the national capital, gold prices dropped by Rs 500, landing at a two-week low of Rs 87,700 per 10 grams. The decline mirrors a strong dollar resulting from fresh US tariffs on Mexico, Canada, and China, pushing investors to sell off holdings and impacting trader uptake, according to the All India Sarafa Association.

The precious metal had previously closed at Rs 88,200, marking a significant tumble. Meanwhile, silver followed suit, plunging by Rs 2,100 to Rs 96,400 per kg. The commodity's downfall is linked to an investor-driven profit-booking from its record-breaking rally and a stronger dollar environment.

Market experts highlight that the dollar's surge, influenced by US President Trump's tariff announcements and rising bond yields in the US, exerted downward pressure on metal prices. Futures trade saw gold for April delivery plummet by Rs 484, indicating a lackluster demand reinforced by inflation concerns keeping the Federal Reserve's rate cuts at bay.