Gold prices in India fell on Monday, tracking a global downtrend as investors reacted to robust U.S. economic indicators and reduced geopolitical anxiety over U.S.-China trade relations.
In domestic markets, 24-karat gold was priced at ₹97,690 per 10 grams, while 22-karat gold stood at ₹89,550. Prices for 18-karat gold were reported at ₹73,270 per 10 grams, according to data from GoodReturns.
On the global stage, spot gold declined by 0.4% to $3,298.12 per ounce, while U.S. gold futures fell 0.9% to $3,317.40 per ounce.
The decline comes on the heels of a stronger-than-expected U.S. jobs report, which showed the addition of 139,000 jobs in May. Wage growth continued and the unemployment rate held steady at 4.2%, prompting investors to reassess the likelihood of near-term interest rate cuts by the Federal Reserve. Market consensus now points to a possible rate cut only by October.
“Gold prices declined following stronger-than-expected U.S. jobs data, which boosted Wall Street and strengthened the U.S. dollar, both typically bearish for bullion,” said Aksha Kamboj, Vice President of the India Bullion and Jewellers Association.
Adding to the pressure on gold prices, upcoming trade discussions between top U.S. and Chinese officials in London have stirred optimism. The prospect of easing trade tensions has weakened demand for traditional safe-haven assets.
“Short-term traders do not want to take aggressive long positions right now ahead of the outcome of U.S.-China talks,” said Kelvin Wong, Senior Analyst at OANDA. He noted that even if tariffs remain in place, reduced trade friction could diminish gold’s appeal.
Domestically, gold faced technical resistance in the range of ₹97,350–₹97,640 per 10 grams and support near ₹96,720–₹96,390, according to Rahul Kalantri, Vice President of Commodities at Mehta Equities.
“Stronger U.S. economic data, dollar strength, and renewed trade optimism kept gold under pressure last week,” Kalantri added.
Looking ahead, investors are focused on the upcoming release of U.S. Consumer Price Index (CPI) data on Wednesday, June 11, and developments from the London trade talks. Any hawkish signals from the Federal Reserve or further easing of geopolitical tensions could cap gains for gold.
Still, analysts caution that persistent global risks—including the ongoing Russia-Ukraine conflict and concerns over the widening U.S. budget deficit—could fuel continued volatility in bullion markets.
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