Bullion Markets React to US Tariff Announcements
Gold and silver prices experienced a sharp decline on April 4, 2025, as global market volatility intensified following the United States’ announcement of new reciprocal tariffs. On the Multi Commodity Exchange (MCX), gold June futures fell by 0.55% to ₹89,684 per 10 grams, dipping below the ₹90,000 mark. Meanwhile, silver May futures slid by 1.78% to ₹94,100 per kilogram.
The downturn in bullion prices mirrored the trend in global markets. Spot gold, after touching a record high of $3,167.57 per ounce, retraced its gains and dropped 0.85% to $3,106.99 per ounce. US gold futures were also down, settling 1.4% lower at $3,121.70 per ounce. Analysts attribute this reversal to a combination of profit-booking and margin calls triggered by a broader sell-off across equity markets. Investors, facing liquidity pressures in other asset classes, were compelled to liquidate gold holdings.
Despite the dip, market experts believe gold’s appeal as a safe-haven asset remains intact. “As the market sold off due to deleveraging pressures, investors saw this as a buying opportunity,” said Peter Grant, VP and senior metals strategist at Zaner Metals.
Silver, Platinum, and Palladium Join the Slide
Other precious metals followed gold’s decline. Silver saw the steepest drop, plunging 5.9% to $32.01 per ounce—its lowest since early March. The fall reflects silver’s dual role as both a precious and industrial metal, making it more vulnerable to broader economic concerns. Platinum and palladium also fell significantly, with prices dropping 3.2% and 4.2% respectively.
According to market analyst Sumeet Jain, “Gold and silver prices crashed vertically after the US tariff announcements. The heavy tariffs could continue to pressure bullion markets in the short term.” He noted that domestic prices reflected this global trend, with gold June futures closing at ₹90,057 (down 0.74%) and silver May futures at ₹94,399 (down 5.37%).
Jain also warned of continued volatility in the bullion market throughout the week, forecasting that gold could test support near $3,040 per ounce and silver could dip to around $31.20 per ounce.
Support Levels and Outlook Remain Mixed
In terms of technical analysis, the MCX has outlined key support and resistance levels for traders. For gold, support is expected at ₹89,360–₹88,800, with resistance at ₹90,700–₹91,200. Silver’s support lies between ₹93,150 and ₹91,800, while resistance levels are pegged at ₹95,200–₹96,600. Experts recommend holding off on new positions until market conditions stabilize.
Despite the current turbulence, the long-term outlook for gold remains cautiously optimistic, supported by continued buying from central banks seeking to reduce dependence on the US dollar. HSBC has projected average gold prices to hover around $3,015 per ounce in 2025.
On the retail front, gold prices in major Indian cities remained consistent: ₹9,339 (24K) and ₹8,561 (22K) per gram in Mumbai, Chennai, Kolkata, and Bangalore, with Delhi slightly higher at ₹9,354 (24K) and ₹8,576 (22K). As global uncertainty persists, investors are advised to stay alert and informed in navigating the evolving precious metals landscape.
