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Gold prices continue to fall in commodity markets

27 May 2025 09:21 (UTC +04:00)

Gold prices declined by 0.5% to settle at ₹95,937 as easing trade tensions between the U.S. and Europe reduced safe-haven demand, APA-Economics reports citing investing.com

The pullback came after President Donald Trump agreed to delay the imposition of a 50% tariff on European goods until July 9, stepping back from the previously announced June 1 implementation.

However, market anxiety remains, with Trump warning Apple (NASDAQ:AAPL) of a potential 25% tariff if it fails to shift iPhone production to the U.S. Despite the current dip, gold gained nearly 5% last week, buoyed by persistent concerns over the U.S.

A new tax bill passed by the House could widen the U.S. budget deficit by nearly $3 trillion over the next decade, lending long-term support to gold. On the global front, China’s gold imports via Hong Kong more than doubled in April to 58.61 metric tons from 21.07 tons in March, reflecting robust demand in the world’s largest gold consumer.

However, physical demand in India remained muted due to high global prices and a weaker rupee, with dealers offering discounts of up to $49 an ounce.

Technically, the market is under long liquidation, as seen by a 10.25% drop in open interest to 8,931. Gold is currently getting support at ₹95,600, and a break below could test ₹95,255. On the upside, resistance is at ₹96,195, and a move above this level may lead prices toward ₹96,445.