Gold prices rebound after a sharp fall, but analysts advise caution as global risk sentiment improves post US-China tariff truce and India-Pakistan ceasefire.
Mumbai | May 13, 2025:
Gold prices witnessed a dramatic rebound on Tuesday, with MCX gold futures surging 1.22% to ₹94,031 per 10 grams, recovering from an earlier drop to ₹92,901. The precious metal had slumped by nearly 4% following the US-China trade deal and broader easing of geopolitical tensions, prompting questions about whether this is the right time to buy gold.
Also Read: Apple May Raise iPhone 17 Prices, Here’s Why
🌍 Global Trade Truce Cools Gold Rally
Investor appetite for gold waned after the United States and China announced a 90-day tariff rollback, easing concerns over global economic instability. The US slashed duties on Chinese imports from 145% to 30%, while China responded by lowering its tariffs on American goods from 125% to 10%.
Also Read: Wall Street Soars as US, China Move Toward Trade Truce; Dow Jumps 2.8%
“The de-escalation of trade tensions led to a sharp rally in the dollar index, weakening gold’s appeal as a safe haven,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
📉 From Rally to Retreat: What Triggered the Fall?
- Gold plunged ₹4,000 to ₹92,500 on MCX post-truce
- Ceasefires between India-Pakistan and signs of de-escalation in Russia-Ukraine conflict added to risk-on sentiment
- Profit booking after a long rally on geopolitical fears further pressured prices
Also Read: Trump Revives ‘Most Favoured Nation’ Drug Pricing Policy To Slash Costs By Up To 80%
📈 What’s Next for Gold?
- Resistance zone: ₹94,000–₹95,000
- Support level: ₹90,000
- Further downside is possible if risk appetite continues to strengthen, analysts say.
“With safe-haven demand weakening, gold could face further corrections if global sentiment remains positive,” Trivedi warned.
🛒 Is It the Right Time to Buy?
Despite recent fluctuations, gold remains FY25’s best-performing asset, delivering:
- 41% return in USD terms
- 33% return in INR terms
According to NSE Market Pulse, global gold demand hit a 15-year high of 4,974 tonnes, driven by a 25% jump in investment demand.
🧭 Expert Advice
Investors are advised to:
- Wait for consolidation near ₹90,000–₹92,000 before fresh entries
- Use current levels for partial profit booking, especially if bought during March-April highs
- Watch global triggers including US inflation data, crude oil prices, and ongoing geopolitical developments
Tags:
Gold price today, MCX gold rate, gold investment advice, US-China trade deal, India-Pakistan ceasefire, commodity market news, gold resistance support levels, FY25 asset performance, global gold demand, safe haven asset