Gold Price Slips as Global Risk Sentiment Improves

Global Tensions Cool, Taking Shine Off Gold

The gold price has been losing steam as global uncertainty begins to fade. With fewer reasons for investors to seek safe-haven assets, gold is taking a back seat in portfolios.

Recent developments in U.S.-China trade talks have been encouraging. Both sides seem willing to reduce friction and move towards an agreement. That shift in tone is calming markets—and that's typically not great news for gold.

India-Pakistan De-escalation Adds to the Pressure

Another significant pressure point for gold has been the easing geopolitical tension between India and Pakistan. Ongoing diplomacy and international involvement have helped reduce immediate concerns, giving investors fewer reasons to hold onto gold as a hedge.

Rising Equities and Stronger Dollar Weigh on Prices

At the same time, the stock market is showing strength, and the U.S. dollar is gaining ground. Both trends are bad news for gold. A strong dollar makes gold more expensive for foreign buyers, and rising equity markets offer more attractive returns, drawing capital away from commodities.

Key Support Levels in Focus on MCX

From a technical perspective, MCX Gold appears to be consolidating between ₹91,542 and ₹93,034. These levels represent key Fibonacci retracement zones from its recent rally (₹86,710 to ₹99,358). Traders are watching closely to see if gold can hold this range, or if further downside is on the cards.

What Could Influence Gold Price Next?

While the long-term outlook for gold remains solid due to inflation concerns and central bank buying, the near-term trend looks muted. If diplomatic progress continues and economic data stay strong, gold may remain under pressure.

Still, any unexpected flare-up in geopolitical risks or weaker equity sentiment could bring the metal back in favor.