The focus now shifts to upcoming US economic data, which could further influence the Federal Reserve’s monetary policy outlook.
As of 0303 GMT, spot gold dropped 0.8% to $3,153.09 an ounce, after touching its lowest level since April 10 earlier in the session.
US gold futures slipped 1% to $3,156.90 an ounce.
In India, according to data from GoodReturns, 24 karat gold is priced at ₹93,930 per 10 grams, 22 karat at ₹86,100, and 18 karat gold at ₹70,450.
Data from Augmont’s Bullion Daily Report shows gold has broken key support at $3,200 an ounce, confirming a bearish trend.
Analysts now see further downside to $3,050–3,000 an ounce in the short term, equivalent to ₹87,000–88,000 per 10 grams in domestic markets.
Indian gold is expected to find support at ₹91,350–90,780 per 10 grams and face resistance at ₹92,450–92,690 per 10 grams.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, said, “Gold prices declined sharply due to profit-taking and liquidation by weaker hands. A shift toward riskier assets continues to pressure safe-haven demand. However, a weaker dollar index and uncertainty over long-term trade deals could lend support to gold at lower levels.”
The global decline comes as the United States and China agreed to reduce tariffs and observe a 90-day pause in trade tensions, temporarily removing a key driver of demand for bullion.
Additionally, US President Trump’s ongoing diplomatic efforts with South Korea, Japan, and India, along with reduced tensions in the Middle East, have collectively lowered geopolitical risk.
Markets now await the US Producer Price Index (PPI) data due later on Thursday (May 15), and Federal Reserve Chair Jerome Powell’s speech, which could offer more clarity on the timeline of potential rate cuts.
A softer-than-expected consumer inflation report earlier this week has strengthened bets that the Fed may cut rates by 50 basis points this year—likely starting in October rather than July.
Gold generally performs well in a low interest rate environment, as it reduces the opportunity cost of holding the non-yielding asset.
While the short-term trend appears weak, some analysts believe this correction could offer a good entry point for long-term investors.
Gold may find a strong base around $3,100 an ounce and ₹90,000 per 10 grams. Investors should monitor key macroeconomic cues before taking fresh positions, experts say.
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