KKN Gurugram Desk |  Gold prices have witnessed a notable decline for the second straight day on the Multi Commodity Exchange (MCX) and in international markets. The weakening trend is primarily attributed to positive developments in the ongoing U.S.-China trade negotiations, which have reduced global uncertainty—thereby softening the appeal of safe-haven assets like gold.

On Tuesday morning, MCX August Gold Futures slipped to ₹96,400 per 10 grams, down by ₹773, while global gold rates fell below $3,310 per ounce.

 Gold Price Movement on MCX – June 10, 2025

According to early trading data from MCX (Multi Commodity Exchange of India), August Gold Futures contracts started the day with a negative bias, marking a steady decline in investor sentiment.

 Key Market Figures:

• Contract: MCX August Gold Futures

• Price Drop: ₹773

• New Price Level: ₹96,400 per 10 grams

• Previous Close: ₹97,173

This marks the second consecutive trading session where domestic futures have registered losses.

 What’s Driving the Price Decline?

 1. U.S.-China Trade Talks – Market Sentiment Improves

The primary trigger for the price drop is growing optimism surrounding the ongoing U.S.-China trade negotiations being held in London. Reports suggest that senior officials from both countries have made substantial progress, reducing geopolitical and economic tension that traditionally fuels demand for gold as a hedge.

• U.S. President Donald Trump indicated that discussions with China were “going well” and “positive results” were likely.

• A Reuters report confirmed that top-level meetings are in their second day in London, focusing on tariffs, intellectual property, and technology transfers.

 2. Reduced Risk Appetite for Safe-Haven Assets

Gold is traditionally viewed as a safe-haven asset, attracting investors during times of uncertainty. However, as trade tensions ease:

• Equity markets regain strength

• U.S. bond yields rise

• Dollar index stabilizes

These factors combined diminish the need for risk-averse assets, causing gold prices to soften.

 International Gold Price Trend

On the global commodities market, gold prices also recorded a drop, mirroring trends in Indian markets.

 Global Snapshot:

• Spot Gold Price: Fell below $3,310 per ounce

• Decline Cause: Progress in U.S.-China negotiations

• Market Tone: Cautiously optimistic

The London Bullion Market Association (LBMA) indicated minor short-term corrections but advised that long-term support remains intact unless economic data shifts significantly.

 Domestic Spot Price Status in India

Even in India’s physical bullion market, spot gold prices have been on the decline since June 9.

 Key Updates:

• Mumbai 24-Carat Gold Rate: ₹95,864 per 10 grams (as of June 9)

• Spot Price Updates: The India Bullion and Jewellers Association (IBJA) updates prices daily at 12:00 PM

• Expected Trend: Slight correction through the week

Retail jewellers in major cities such as Delhi, Mumbai, Kolkata, and Chennai have confirmed lighter footfall due to price volatility.

 MCX Gold vs Spot Price: What’s the Difference?

For retail investors and traders, it’s essential to understand the difference between futures trading on MCX and spot price in the physical market.

While MCX is more reflective of short-term sentiment, spot prices align with consumer and jeweller demand.

 Impact on Retail Buyers and Investment Strategy

 For Retail Consumers

• With the price drop, it may appear as an attractive buying opportunity for those planning to purchase jewelry, especially ahead of the wedding season or festivals like Raksha Bandhan and Janmashtami.

• However, experts advise caution, as short-term volatility is expected to continue.

 For Investors

• Investors should analyze support levels near ₹95,000/10g on MCX.

• If gold breaks below this level, a further correction of ₹1,000–₹1,500 is possible.

• Those holding long-term ETFs or Sovereign Gold Bonds (SGBs) are advised to stay invested unless macroeconomic data forces a major policy shift.

 Key Expert Insights

Commodity Analyst View:

“The gold market is reacting to reduced fear in global markets. While long-term fundamentals remain strong due to inflation and rate cut expectations, in the short run, we may see consolidation,” – Rajeev Mehta, Lead Analyst at Angel One Commodities.

 IBJA Official Statement:

“As trade deal optimism spreads, gold faces pressure. However, demand in India remains robust due to cultural and seasonal factors.”

 Related Economic Indicators to Watch

The next few sessions will be shaped by additional macroeconomic data:

Any surprise hawkish signals from the U.S. Federal Reserve could further pressure gold, while dovish cues would support a rebound.

 Technical Outlook for Traders

 Chart Analysis (MCX August Gold Futures)

• Support Level: ₹95,000

• Resistance Level: ₹97,800

• Trend: Mildly Bearish

• RSI (Relative Strength Index): Hovering around 42 (neutral zone)

Traders are advised to:

• Avoid fresh longs until a breakout above ₹97,500

• Consider short-term trades with stop-losses near resistance

Other Precious Metals

While gold saw a decline, silver prices also followed suit:

• MCX Silver July Futures: Down by ₹400 at ₹1,22,300/kg

• Global silver prices softened as well, trading near $39.80/oz

Industrial demand remains flat amid economic uncertainty in China and Europe.

 Currency & Import Impact

INR vs USD Movement

• The Indian Rupee remained stable at ₹82.60/$, offering no additional import cost benefit.

 Import Scenario

• India is the world’s second-largest importer of gold.

• Any dip in international prices directly eases the import bill, helping the current account deficit.

 Should You Buy Gold Now?

 Buy If:

• You are a long-term investor (5+ years)

• You are diversifying your portfolio with safe assets

• You plan for jewelry purchases in the next 2–3 months

Wait If:

• You are looking for short-term gains

• You expect further correction due to Fed tightening or trade breakthroughs

Gold remains a hedge against inflation, but entry timing matters for optimal returns.

The decline in gold prices this week highlights the sensitivity of global markets to geopolitical signals and economic data. For Indian investors and consumers, the key is to track not just domestic prices but also the international developments, especially those related to the U.S., China, and central bank policies.

The current softness in the market is not necessarily a bearish signal—it could also represent a healthy consolidation phase after months of sharp upward movement.