Gold prices fell ₹839 to ₹95,073 per 10 gram in futures trade in India on Friday, April 25, as the US dollar rebounded amid a possible easing of the trade war between the world’s superpowers, the US and China.
On the Multi Commodity Exchange (MCX), gold contracts for June delivery fell ₹839, or 0.87%, to ₹95,073/10 gram, with a turnover of 18,007 lots. Simply put, 18,007 gold futures contracts were traded on MCX during the session.
The August contract of the precious metal on MCX fell ₹760, or 0.79%, to ₹95,858 per 10 gram. Gold prices fell by ₹655 to ₹95,631 per 10 grams (99.9 purity) in Mumbai spot markets.
Standard gold (99.5 purity) fell by ₹652 to ₹95,248 per 10 grams. Bullion markets remained closed in Delhi due to a shutdown called by traders to protest the Pahalgam terror attack. Meanwhile, on the global front, gold futures in New York fell by $40.26, or 1.2%, to $3,308.34 an ounce. According to analysts, gold prices fell due to weak global cues. Gold prices have been rising steadily this year, gaining over 26% since January 1, 2025. “Gold prices are under pressure as the US dollar strengthened on expectations of progress in US-China trade talks,” said Chintan Mehta, chief executive officer, Abans Financial Services.
This development is fuelling safe-haven demand for gold as investors look for a possible easing of tensions. If this trend continues, gold could remain in the near term, he added. The easing of the trade war comes at a time when China is now considering exempting some US imports from the 125% tariffs previously imposed as retaliation for tariffs imposed by Trump. Notably, China has asked businesses to identify products that may be eligible for exemptions.
This is the strongest indication of the fact that Beijing is getting more and more concerned about the economic fallout of the trade war. This shift comes at a time when China wants to aid its domestic industry. The rising tensions between India and Pakistan are also creating a volatile environment as investors look for safe havens to hedge against volatility and geopolitical instability.
Mehta further added that the focus will be on the upcoming IMF meeting this weekend, where any signs of further policy easing or extended global uncertainty could increase gold’s appeal and boost safe-haven demand.
According to commodity experts, future monetary policy decisions by the US Federal Reserve, especially the decision to cut interest rates, could have an impact on gold’s movement.
According to a JP Morgan report dated April 22, 2025, gold prices are likely to reach $4,000/oz due to tariff-driven recession and stability risks. According to the report, gold prices could reach an average of $3,675/oz by the last quarter of 2025 and above $4,000/oz by the second quarter of 2026.
Gold prices downfall by Rs 839 to Rs 95,073 per 10 gram in futures trade due to rise in US dollar
