Gold Price Tumbles Rs 1,550 on Trade War Fears

New Delhi, Apr 7 (PTI) Gold prices tumbled by Rs 1,550 to Rs 91,450 per 10 grams in the national capital on Monday amid heavy selling by jewellers and stockists as well as weak global trend, according to the All India Sarafa Association.

On Friday, the precious metal of 99.9 per cent purity had finished at Rs 93,000 per 10 grams.

Gold of 99.5 per cent purity plunged by Rs 1,550 to Rs 91,000 per 10 grams. It had closed at Rs 92,550 per 10 grams in the previous market close.

"Gold price slipped...on Monday as panic selling in the equity market and other asset classes continues to weigh down on safe-haven precious metals," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Continuing the losing streak for the fifth consecutive day, silver prices slumped by Rs 3,000 to Rs 92,500 per kg from Friday's closing level of Rs 95,500 per kg.

In the past five sessions, the metal had tanked by Rs 10,500 per kg.

On the global front, spot gold fell USD 10.16 or 0.33 per cent to USD 3,027.20 per ounce.

"Sentiment remained cautious with investors looking for further clarity from the US on its next course of action, especially amid escalating trade tensions," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.

The upcoming US Consumer Price Index (CPI) data is expected to play a crucial role in shaping rate interest cut expectations, which could influence gold's direction globally, Trivedi said.

For domestic markets, he stated that investors will also closely watch the Reserve Bank of India's policy meeting later this week, he added.

However, spot silver in the Asian market hours rose 1.65 per cent to USD 30.04 per ounce.

According to Kotak Securities, gold prices saw a sharp decline, in line with a broader market slump, as US President Donald Trump's tariffs and China's retaliatory measures dampened market sentiment.