Gold Market Declines After Trump’s Victory, Prices May Fall to ₹72,500 in December
New Delhi: After setting record highs last month, gold prices are now on a downward trend. On October 27, gold was trading at ₹80,440 per 10 grams in the Delhi bullion market, which has now dropped to ₹77,430 per 10 grams. Experts believe that after the U.S. election results, investors began withdrawing from the gold market, leading to a continuous price decline for the precious metal. Market analysts predict that due to recent global changes, gold could further dip to ₹72,500 per 10 grams in the coming days.
Today, in the domestic bullion market, 24-carat gold is trading between ₹77,430 and ₹77,280 per 10 grams, experiencing a drop of ₹1,470. Similarly, 22-carat gold is trading between ₹70,990 and ₹70,840 per 10 grams, marking a ₹1,350 decline. This marks the fifth consecutive day of gold price declines in the bullion market.
Experts say that the sharp drop in international gold prices has affected the domestic bullion market as well. Globally, gold has fallen from its all-time high of $2,800 per ounce to $2,617.15 per ounce. Meanwhile, on COMEX, gold futures are trading slightly higher at $2,621.85 per ounce compared to spot gold.
Global Tensions Decrease as Trump’s Victory Provides Stability
According to bullion market expert Mayank Mohan, last month’s political uncertainties in the U.S., combined with geopolitical tensions and large gold purchases by central banks, pushed gold prices to new heights. However, Donald Trump’s win has brought political stability, and his efforts to communicate with leaders of over 70 countries post-election suggest a possible easing of global tensions. As a result, investors have reduced their gold investments.
Gold is traditionally viewed as a safe investment, so in times of crisis or global tension, investors often increase their gold holdings. In normal circumstances, however, they tend to invest more in equities or cryptocurrencies, which, though riskier, often yield better returns.
Mayank Mohan notes that, after October’s tense atmosphere, November has shown signs of relief, prompting investors to shift from gold to the equity markets. The announcement of China’s relief package has particularly attracted investors to Chinese stock markets, resulting in continued withdrawals from global gold markets and declining gold prices. This international trend has influenced domestic bullion markets, where spot gold prices have also been consistently falling.
Similarly, commodity market expert Nirmal Jain highlights that the dollar index is currently at a four-month high, reducing investor interest in gold. This dollar strength could push spot gold below $2,600 per ounce to around $2,560. If this drop occurs internationally, it will also impact the domestic bullion market.
However, Nirmal Jain also points out that the wedding season in India began with Dev Uthani Ekadashi, which will continue to support gold demand domestically, even amid falling global prices. Still, after the wedding season ends, gold prices may dip to around ₹72,500 to ₹74,000 per 10 grams in December. Thus, small and retail investors are advised to plan their investments carefully during this period.