In the first quarter of the calendar year, gold prices saw a rise of 19 percent. In such a situation, there has been a decrease in retail demand. On the other hand, due to the tremendous rise in gold prices, investors have come into a selling mood. On the other hand, gold prices are expected to come down in the coming days due to reduction in geo-political tension and uncertainty.

After US President Donald Trump imposed reciprocal tariff, China has also come into action. Like America, China has also imposed an extra tariff of 34 percent on the US. After which a tremendous decline has been seen in the prices of gold and silver. In the futures market of India, the price of gold has seen a decline of 2.20 percent. On the other hand, a huge decline of 7.61 percent has been seen in the prices of silver. The special thing is that the price of one kg silver has fallen below the price of 10 grams of gold. Which has rarely been seen before. A similar situation has been seen in foreign markets. There has been a decline of two and a half percent in the prices of gold spot and gold futures. On the other hand, the price of silver crashed by more than 8 percent.

Now the biggest question is whether the prices of gold and silver will continue to fall like this or the trend will continue. According to experts, gold prices saw a 19 percent increase in the first quarter of the calendar year. In such a situation, there has been a decrease in retail demand. On the other hand, due to the tremendous price rise in gold prices, investors have come in a selling mood. On the other hand, gold prices are expected to come down in the coming days due to reduction in geopolitical tension and uncertainty. Let us also tell you how much the price of gold has fallen in the month of April and what level gold can reach in the coming days.

Huge drop in the prices of gold and silver

After China announced 34 percent tariff against America, a huge drop was seen in the price of gold on the Multi Commodity Exchange. On April 4, the price of gold fell by 2.20 percent i.e. Rs 1,982 to Rs 88,075 per ten grams. Whereas a day before, i.e. on April 3, the price of gold was at Rs 90,057 per ten grams. If we talk about April, then there has been a decline of Rs 2,642 per ten grams in the price of gold. This means that the price of gold has come down by about 3 percent.

On the other hand, a huge drop has been seen in the price of silver on MCX. If we look at the data, the price of silver has fallen by 7.61 percent i.e. Rs 7,188 on Friday and the prices have come down to Rs 87,211 per kg. A day earlier, i.e. on April 3, the price of silver was at Rs 94,399. In the month of April, a 13 percent drop has been seen in the price of silver. This means that in these four days, silver has become cheaper by Rs 13,246 per kg.

There is chaos in the global market as well

On the other hand, there is a lot of uproar in the prices of gold in the global market as well. If we look at the data, the price of gold futures in the New York Comex market has come down by 2.86 percent i.e. $ 86.30 per ounce to $ 3,035.40 per ounce. On the other hand, the price of gold spot has come down by 2.47 percent i.e. $ 77.10 per ounce to $ 3,038.24 per ounce. While the price of silver futures has come down by 8.57 percent i.e. $ 2.74 per ounce to $ 29.23 per ounce. On the other hand, the price of silver spot has come down by 7.13 percent i.e. $ 2.27 per ounce to $ 29.59 per ounce. According to commodity market experts, gold prices are likely to fall further due to relatively low geopolitical tension. With reduction in global uncertainty, demand for safe haven assets like gold is expected to decline.

Is there profit booking in gold prices?

Jatin Trivedi, Vice President of Commodity and Currency Research at LKP Securities, highlighted in a media report that gold prices are witnessing profit booking after China announced additional tariffs on Friday, as markets are preparing themselves for the trade war that has been going on for the past few months. Trivedi said that gold prices saw profit booking after the official announcement of tariff pricing. This move has been taken at a time when markets had already assessed the impact of reciprocal tariffs in the past few months, making profit booking a natural outcome.

He said that with tariff premiums now largely discounted, further downward pressure could emerge as geopolitical tensions remain relatively low, especially from Russia-Ukraine and the Middle East. This reduction in global uncertainty could soften safe haven demand. The commodity expert said that on the technical front, Comex gold price is facing strong resistance in the $3,120 to $3,130 region, while immediate support is around $3,050 to $3,055. A decline below this could increase selling pressure in the near future.

Will domestic gold prices fall?

SS Wealthstreet founder Sugandha Sachdeva said in a media report that the rise in gold prices is facing global challenges due to the ongoing trade war between the US and other countries including China. Sachdeva said that the recent rise in gold has faced challenges, sales pressure is emerging despite the ongoing obstacles in global trade. President Trump's decision to keep gold and silver out of tariffs has reduced supply side concerns.

Commodity experts estimate that “At the same time, retail demand has softened after a massive 19 per cent surge in prices in the last quarter. The inability to sustain gold prices above the resistance level of $3,120 per ounce in the international markets and Rs 88,800 per 10 grams in the domestic markets indicates a possible downside, with domestic prices potentially falling to the crucial support of Rs 87,000 initially or Rs 84,000 per kg in the coming days.