Spot gold fell 0.4% to $3,329.12 an ounce by 0211 GMT. US gold futures dropped 0.2% to $3,342.40 an ounce.
In India, gold was priced at ₹9,797 per gram for 24 karat, ₹8,980 for 22 karat, and ₹7,348 for 18 karat gold, according to Goodreturns.
Gold retraces after rally
Gold cooled off sharply after touching an all-time high of $3,500 an ounce (~₹99,350 per 10 grams) last week.
According to Augmont, the rally lost steam after former US President Donald Trump hinted at softening his aggressive trade stance towards China.
Trump said the US had entered discussions with China and would be “reasonable” about tariffs. News also emerged that China had exempted some American goods from tariffs, further easing fears.
“Markets are reacting positively to signs of negotiation, but uncertainty remains high enough to keep gold supported,” Augmont noted.
Geopolitical risks still linger
Even as trade tensions eased, other risks surfaced. Reports suggested a senior Trump aide could soon meet Russian President Vladimir Putin. Meanwhile, US-Israel discussions over Iran’s nuclear program stirred fresh concerns.
Any flare-up in these areas could revive gold’s appeal quickly, analysts said.
Central banks continue buying
Adding long-term support to gold prices, the Reserve Bank of India (RBI) boosted its gold reserves by 57.5 tonnes in FY24.
As of March 2025, RBI held 879.6 tonnes of gold, up from 822.1 tonnes a year earlier.
Globally, central banks have been steadily buying gold to hedge against US dollar weakness and geopolitical risks.
Technical charts signal caution
On the technical side, gold formed a “Shooting Star” pattern last week, a classic warning of possible reversal.
“If prices sustain below $3,300 per ounce (₹95,000 per 10 grams) this week, they may fall further to $3,240 per ounce (₹93,000 per 10 grams) and even $3,175 per ounce (~₹91,500 per 10 grams),” Augmont’s report said.
However, if prices rebound above $3,380 per ounce (₹96,400 per 10 grams), gold could rally again towards $3,435 per ounce (₹97,400 per 10 grams) and $3,500 per ounce (~₹99,400 per 10 grams).
Outlook and how to invest
Investors now watch key US economic data, including today’s job openings report and Friday’s (May 2’s) non-farm payrolls.
Volatility is expected to remain high. Experts suggest cautious exposure:
- Gold ETFs for steady, long-term investment.
- Physical gold purchases should be moderate, mainly for jewelry or festive needs.
For now, gold holds strong support from global uncertainties — but sharp swings remain possible.
