Gold prices in the national capital tumbled by ₹1,000 on Tuesday, August 12, 2025, settling at ₹1,01,520 per 10 grams for 99.9% purity, according to the All India Sarafa Association. The decline mirrored weakness in global markets and followed comments from U.S. President Donald Trump indicating that gold imports would not be subject to tariffs.
On Monday, the precious metal had closed at ₹1,02,520 per 10 grams. Similarly, gold of 99.5% purity fell by ₹1,000 to ₹1,01,100 per 10 grams, inclusive of all taxes.
Trump’s Statement Eases Trade Concerns
Chintan Mehta, CEO of Abans Financial Services, said the market reacted swiftly after Mr. Trump’s social media post stating that no tariffs would be imposed on gold imports. “While an official White House confirmation is awaited, the announcement reduced trade-related concerns,” Mehta explained.
The White House also confirmed on Monday that high-level tariffs on China would remain suspended until November 11, offering temporary relief to global markets but putting downward pressure on bullion prices.
In currency markets, the Indian rupee gained 10 paise, opening at 87.65 against the U.S. dollar in early trade on Tuesday.
Silver Also Under Pressure
Silver prices saw an even steeper fall, dropping ₹2,000 to ₹1,12,000 per kilogram (inclusive of all taxes) from Monday’s level of ₹1,14,000 per kg.
On the international stage, spot gold traded at $3,347.18 per ounce in New York, marginally higher by 0.13%. Spot silver rose nearly 1% to $37.90 per ounce in overseas markets.
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Analysts Cite Tariff Relief and Geopolitical Speculation
Renisha Chainani, Head of Research at Augmont, said that Mr. Trump’s assurance on gold tariffs helped push global prices below $3,400 per ounce. She added that upcoming U.S. economic indicators — including CPI, PPI, and retail sales — Will be closely monitor for signals on the Federal Reserve’s interest rate path.
Market watchers also point to upcoming speeches from U.S. Fed officials as potential catalysts for short-term moves in gold and the U.S. dollar.
Additionally, speculation about a potential Russia–Ukraine truce plan. Possibly to be discuss during Mr. Trump’s meeting with Russian President Vladimir Putin on August 15. Has dampened safe-haven demand for gold.