Gold price slightly rose to ₹96,765 per 10 grams on the Multi Commodity Exchange (MCX) in Ahmedabad Monday, after closing at ₹92,441 in the previous session. Meanwhile, international gold

prices are currently at $3,241.65 per ounce as of 17:00 PM (IST).

Dr Renisha Chainani, Head- Research, Augmont, said, "Gold saw a steep weekly loss of more than 4% last week, its most since November 2024, as it dropped to $3,180. Since its April peak of

$3,500, the precious metal has lost more than $300 as technical selling quickens and safe-haven demand wanes."

Echoing similar views as Chainani, Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said, "COMEX Gold fell to a one-month low of $3,123 per ounce last week, marking a sharp 4%

weekly loss, its worst performance of the year. The decline was driven by easing geopolitical tensions and improving trade sentiment. Progress in the US-China tariff negotiations, President

Trump’s decision to lift sanctions on Syria during his Middle East tour, and growing optimism over potential trade deals with Japan and South Korea all reduced demand for traditional

safe-haven assets."

Adding to the bearish tone, the US announced plans to significantly lower the 'de minimis' tariff threshold for low-value Chinese imports, possibly to as low as 30%, encouraging a shift

toward riskier assets. Gold extended its recovery today, with COMEX futures surging above $3,250 per ounce, amid growing concerns about the US economic outlook and fiscal stability following

the credit downgrade renewed safe-haven bids.

"Furthermore, following Friday's market close, the Moody's Ratings agency lowered the US's sovereign debt credit rating. Citing unsustainable debt growth and growing interest rates, the

agency downgraded U.S. debt from Aaa to Aa1. It changed its assessment of the United States from "negative" to "stable" at the same time. The US is dealing with growing debt finance costs

that are significantly higher than those of comparable government debt loads, according to Moody's. In particular, the US interest obligations "that are significantly higher than similarly

rated sovereigns" were emphasised by Moody's," said Chainwala.

Weaker-than-expected U.S. economic data has strengthened market expectations of interest rate cuts by the Federal Reserve, pushing the dollar lower and reducing Treasury yields—factors that

typically support non-yielding assets like gold. "Caught between these opposing forces, gold prices may continue to face headwinds. However, significant losses below current levels appear

unlikely, as despite recent optimism surrounding trade and geopolitics, uncertainty remains the dominant theme for market participants," said Chainani.

She said the market may take a wait-and-see stance due to changing investor attitudes in the global marketplace, which might cause gold prices to drop this week. This week's sell-off is the

largest since mid-June 2021 and is marginally steeper than the November sell-off following President Donald Trump's election victory.

At this point, gold is rapidly losing money and about to experience another decline. Fears of a trade war, easing geopolitical tensions, and the Fed's propensity to maintain its current

monetary policy are all factors that are hurting the price of gold.

"Gold has closed below $3,180 after failing to hold above the key $3,200 barrier. A possible trend reversal from April's record highs is indicated by the bearish double top pattern visible

on the daily chart. The 50-day Exponential Moving Average (EMA) around $3,170 further supports the $3,160-3,150 (around Rs 91,500) support zone, which is in tight alignment with the

pattern's neckline. A clear breach below this range would pave the way for a more significant decline in the direction of the $3,000 (around Rs 86,000) handles," said Chainani.