April 24, 2025 - US President Donald Trump has indicated a softer stance on tariffs against China saying he would treat China “very well” in any trade negotiations. He has also hinted that the tariffs on Chinese imports would be significantly reduced.

“Tariffs on Chinese goods won’t be as high as 145%,” he said adding that once a deal is in place, tariffs will come down considerably - but they won’t return to zero, as they used to be.

In addition, Trump has made it clear that he has no intention of removing Federal Reserve Chairman Jerome Powell.

Following these statements, the US dollar strengthened leading to gold prices taking a sharp dive in the international markets. There was a substantial dip of Rs 3,800 within two days.

Gold prices are showing significant volatility. After hitting a record high of $3,510 per ounce on April 22, gold plunged by $210 (around 6%) to settle at $3,300 per ounce. This sharp decline was also reflected in India’s Futures market, MCX, where gold fell by Rs 4,400 (around 3%) from its all-time high on April 22, slipping below Rs 95,000 per 10 grams.

In the domestic bullion markets as well, the price of 24-carat gold dropped by Rs 2,500-Rs 4,000 per 10 grams, hovering around Rs 98,000, compared to over Rs 1.02 lakh on April 22.

Meanwhile, after a lower closing yesterday, the MCX gold June Futures Contract opened today’s trading at Rs 96,188 per 10 grams, showing a jump of Rs 1,466. Yesterday, on April 23 the gold June Futures Contract concluded at Rs 94,722 per 10 grams, declining by 2.69%.
 

Source: Media Reports