Gold Plunges Over $100 In Sharpest Fall Of 2025 — Experts Decode The Retreat From Record High
There could be a "healthy correction" of around 7–8% in the prices of gold, which hovered close to Rs 1 lakh-mark in India till a day earlier, an analyst said.
Gold prices in both global and domestic markets nose-dived after hitting a record high earlier this week. The precious metal, which thrives amid geopolitical and economic uncertainties, slipped after a report suggested a substantial easing in the trade war between the United States and China.
The bullion prices took a hit after Wall Street Journal reported the White House may slash tariffs on China from 145% to 50-65%. The report came after the Donald Trump-led administration indicated that it was open to a trade pact with China that can significantly bringing down the import levies.
Global spot gold prices saw a 3.56% decline, which led to its biggest intraday fall of the year so far to $3,260. The decline marks a correction of more than $100 in one day.
Domestic spot prices on India's Multi-Commodity Exchange dropped by Rs 3,085 per 10 gram to hit an intraday low of Rs 95,143. The 2.63% slip marked the sharpest intraday fall of the week so far.
The decline in gold prices comes a day after it soared to record high levels, even reportedly topping the Rs 1 lakh-mark in the retail market.
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What Gold Slipped From Record Highs
Putting the dip in perspective, experts attribute the decline directly to the report of the White House's possible slash in tariffs on China.
"Gold corrected by more than $100 points in a day and more than $200 from its high levels in just two trading days," according to Anuj Gupta, head of commodities and currency at HDFC Securities.
This move signals a possible de-escalation of trade tensions and this reduces the investor appeal for the safe-haven investment.
"Optimism comes as Trump does not intend to fire Fed chair Jerome Powell. Trump is also indicating relaxation in tariff for China. The dollar index is also recovering from lower levels," he added.
"Investors booked profits on gold and put their money in equities, following the President’s comments. Further, dollar index also recovered to 99.6 from its lows which put pressure on gold prices," said Mangesh Chauhan, managing director and chief financial officer of Sky Gold & Diamonds Ltd.
Looking ahead, Amit Gupta, senior research analyst of commodity, equity and currency at Kedia Advisory, expects a healthy correction of around 7–8%—bringing prices down to Rs 91,000 to Rs 92,000 given the developments.
