London: Gold prices experienced a decline on Tuesday, June 10, as investors adopted a cautious stance ahead of the high-level trade discussions between the United States and China.
According to Azeri-Press News Agency, these talks, taking place in London, have heightened market attention due to their potential impact on global trade dynamics.
In the international market, spot gold decreased by 0.5%, settling at $3,311.16 per ounce. Concurrently, US gold futures saw a drop of 0.7%, reaching $3,330.90 per ounce as recorded at 01:25 GMT. In India, the pricing for gold was reported at ?97,580 per 10 grams for 24 karat gold, ?89,450 for 22 karat, and ?73,190 for 18 karat, as per data from Goodreturns.
Market analysts, such as Tim Waterer of KCM Trade, observe that gold is being traded cautiously as the world awaits the outcome of negotiations between these two major economies. The discussions focus on critical issues such as tariffs and rare earth exports. A successful resolution could diminish the demand for
gold as a safe-haven asset, whereas ongoing uncertainty could bolster its value.
US President Donald Trump has expressed optimism by indicating that the trade talks are progressing positively. Last month, both nations agreed to pause additional tariffs, briefly alleviating market concerns. However, recent data from China revealed a slowdown in exports to a three-month low in May, coupled with a significant drop in factory-gate prices, reflecting the economic strain from trade tensions.
The market is also closely monitoring upcoming US inflation data scheduled for release on Wednesday, June 11. Tim Waterer noted that an unexpected rise in the Consumer Price Index (CPI) could enhance demand for gold as a safe haven, thereby increasing prices. Gold traditionally performs well during periods of economic or geopolitical uncertainty and when interest rates are low.
Rahul Kalantri, VP Commodities at Mehta Equities, highlighted that although gold prices initially dipped, they later rebounded due to a weaker dollar
and lower US bond yields. He also pointed to the continued gold purchases by the Chinese central bank as a supportive factor. Kalantri identified the support level for gold at ?96,720 per 10 grams and resistance at ?97,640 per 10 grams.
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association, remarked on the ongoing decline in gold prices despite steady central bank purchases. She emphasized the importance of the trade talks’ outcome and key inflation indicators this week, particularly in the context of the upcoming US bond auction.
The short-term outlook for gold remains cautious, with prices likely to fluctuate in response to geopolitical cues, inflation data, and central bank policy decisions.