On April 3rd, 2025, global gold price records failed to boost Indian gold values in significant city zones such as Delhi, Mumbai, and Chennai. U.S. President Donald Trump’s decision to impose high reciprocal trade tariffs on global partners caused significant market disruption.
Global Gold Market Reaction to Tariffs
The United States President, Donald Trump, established substantial import tariffs against Chinese manufacturers and European Union and Japanese importers on the second day of April 2018. Tariffs ordered by the United States government applied to Chinese products vary between 10% and the highest level of 34%. Trump imposed the latest trade barriers against what he deemed as unfair practices, sending shockwaves through worldwide markets. The U.S. witnessed its highest recorded gold price, reaching $3,167.57 per ounce, because investors bought the precious metal due to their concerns about an enduring trade war and decreasing stock market forecasting.
Stock market futures indicated investor fear of these tariffs, which led to the S&P 500 futures plummeting by 3% while Nasdaq futures declined by 4%. Since the beginning of 2025, gold prices have increased by nearly 20% in value, serving as a protective financial asset during times of economic instability.
Gold Prices in India
Today the Indian markets followed an opposite direction to global gold price increases. Gold prices of both 22-carat and 24-carat value declined simultaneously throughout Delhi, Mumbai, and Chennai markets.
A 10-gram piece of gold rated 22-carat in Delhi cost ₹85,090, whereas the same weight of gold in its 24-carat form reached ₹92,830.
The delivery rates of both 22-carat and 24-carat gold in Mumbai were consistent with Delhi at ₹85,090 and ₹92,830.
The price range for gold in Chennai reached ₹85,240 for 22-carat, while ₹92,980 stated the cost of 24-carat gold.
Silver prices decreased in every one of these Indian cities. The current price of silver in Delhi and Mumbai equals ₹1,04,900 per kilogram, but Chennai buyers paid ₹1,13,900 per kilogram.
The reason behind Indian gold prices continuously dropping
There are multiple reasons behind the decreasing Indian gold prices, which include:
1. A strong Indian rupee value against the U.S. dollar leads to cheaper imports of gold. India stands as a leading global gold importer, and its domestic gold prices heavily depend on changes between the rupee-dollar exchange rates.
2. The Indian population buys physical gold based on seasonal phenomena because wedding celebrations and festivals prompt shifts in domestic gold requirements. Current market price declines may result partly from a reduced period of customer interest.
3. The local markets could display divergent trends from international markets because global gold investment patterns do not always translate directly through different market supply and demand patterns.
Investor Sentiment
Gold pricing shows diverse patterns between international markets and domestic Indian markets because of their contrasting behaviors. Worldwide market participants prepare for economic deceleration because trade conflicts continue to increase. Indian investors demonstrate prudence because of changing market values for gold.
India continues to invest in gold as an investment strategy because of its cultural importance and its reputation as an anti-inflation protection. The price instability that arises in short-term periods prevents many retail buyers from conducting substantial investments.
Outlook
Analysts predict ongoing market turbulence involving international and domestic gold prices because of the rise in geopolitical tensions along with Trump’s forceful trade strategies. Market forces will determine any additional price changes that Indian buyers face based on global developments and their effects on foreign exchange rates.
Currently, the market provides buyers an opportunity to purchase gold at lower prices compared to past peaks. It’s a good moment to purchase gold, but they should keep an eye on how trade policies impact commodity prices.
The world witnessed increased gold prices that reached new highs because of Trump’s trade policies, but Indian gold markets experienced short-term price drops. Future global trade tensions will decide if current price trends stay the same or return to their previous state.
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