Gold Prices Decline to Rs 96,900 per 10 Grams Today

Gold prices experienced a notable decline on Wednesday, driven by increasing optimism surrounding potential trade discussions between the United States and China. This shift in sentiment has diminished the demand for gold as a safe-haven asset. Investors are now closely monitoring the upcoming policy announcement from the U.S. Federal Reserve, which is expected to influence market dynamics significantly.

Current Gold and Silver Prices

As of 10:01 AM, gold futures for June were trading at Rs 96,927 per 10 grams, reflecting a decrease of Rs 564 from the previous close. Similarly, June silver futures saw a slight drop, trading at Rs 96,690 per kg, down by Rs 11. In international markets, spot gold fell by 1.2% to $3,388.67 an ounce, following a nearly 3% rise in the previous session. This decline in gold prices is attributed to the easing of safe-haven demand as trade talks between the U.S. and China gain momentum.

U.S.-China Trade Talks

The anticipated trade discussions between U.S. Treasury Secretary Scott Bessent, trade negotiator Jamieson Greer, and Chinese Vice Premier He Lifeng have sparked hopes for reduced trade tensions. Last month, both nations implemented reciprocal tariffs, raising concerns about a slowdown in global economic growth. In a related development, U.S. President Donald Trump announced that he and senior administration officials would evaluate potential trade agreements over the next two weeks to identify which ones to pursue. This proactive approach aims to alleviate trade-related uncertainties that have been affecting market stability.

Federal Reserve’s Policy Announcement

Market participants are eagerly awaiting the Federal Open Market Committee (FOMC) meeting scheduled for later today. Analysts predict that the U.S. central bank will maintain current interest rates, but there is speculation about potential rate reductions of up to 80 basis points later this year, starting in July. Investors are particularly interested in comments from Federal Reserve Chair Jerome Powell, as they may provide insights into the timing of future interest rate adjustments. The outcome of this meeting could significantly impact gold prices, as the precious metal tends to perform well in low-interest-rate environments.

Market Trends and Predictions

Gold prices dipped below $3,380 per ounce following reports of the upcoming U.S.-China trade talks, which have eased the demand for safe-haven assets. The U.S. dollar index has also strengthened above 99.5, further limiting the upside for gold. Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that investors are closely watching Fed Chair Powell’s statements for clues about future rate changes. He emphasized that gold typically serves as a hedge against economic and political uncertainties, making its performance crucial during times of low interest rates. In the broader metals market, silver, platinum, and palladium also experienced declines, reflecting the overall trend in precious metals.

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