Gold Shines Globally but Slips Below Rs 90K in Domestic Market: Here's Why

Gold Rates Today: The yellow metal continues to shine in the spot market, hovering around $3,000 price level. Geopolitical uncertainty owing to Trump's April 2 tariff deadline coupled with Fed's cautionary commentary during the last meet, has pushed investors to go bullish on gold. Despite the overall optimism, gold prices continue to witness a decline in domestic markets.

More than the demand play, analysts pointed out the strengthening of the domestic currency as the major reason behind this trend gap. A stronger rupee makes imported gold cheaper, offsetting the gains seen globally. This continues to act as a minor hurdle for domestic gold prices.

"Gold remained positive in the spot market, gaining $10 to trade at $3,028, but stayed flat in the domestic market at Rs 87,750 due to rupee appreciation, which limited the upside. The strength in the rupee continues to act as a minor hurdle for domestic gold prices," said Jateen Trivedi, VP research analyst-commodity and currency, LKP Securities.

Since last week, the domestic currency has witnessed a marginal uptrend owing to positive equity market sentiment and foreign institution investors turning buyers again.

Gold Rates Today

While the yellow metal continues to experience a declining trend in price levels, the overall outlook remains largely positive. On Tuesday, rate of 24-carat gold (per 10 gram) marginally dropped to Rs 89,760, as per goodreturns website.

"Gold and silver prices are trading mix today on the international bourses. We expect precious metals prices on Indian bourses to trade range-bound to slightly lower for the day, as gold prices are steady — following a three-day run of losses — with the market digesting President Donald Trump’s latest tariff threats," brokerage firm Nirmal Bang said in a note.

What will drive gold prices this week?

In the week ahead, key US economic data, including the PCE price index, Manufacturing PMI and Services PMI, will play a crucial role in determining market direction. The expected trading range for gold is Rs 87,000–Rs 88,500, said Trivedi.

Meanwhile, with Trump’s April 2 tariff deadline nearing, investors will likely stay on edge as they try to calculate the impact of 'reciprocal' tariffs.