Gold Prices Drop Below ₹96,000 On MCX Amid Easing Global Tensions; Silver Also Slips – Live India
Gold sees biggest one-day fall in over a decade as investors move away from safe-haven assets.
April 23, 2025 — Gold prices plunged on Wednesday, marking the steepest one-day decline in 12 years. The dramatic drop came as President Donald Trump confirmed he will not fire Federal Reserve Chair Jerome Powell and signaled progress in easing U.S.-China trade tensions.
Why Did Gold Prices Fall?
The price of gold fell by 3.6% to $3,276.30 per ounce, a loss of $124.50 — the largest single-day drop since April 2013. This sharp move came just one day after gold hit a new all-time high of $3,500 per ounce.
Several key factors drove the decline:
- President Trump confirmed he will not remove Fed Chair Jerome Powell, reassuring markets about monetary policy stability.
- Treasury Secretary Bessent hinted at a de-escalation in the U.S.-China trade war, easing investor fears about global economic uncertainty.
- Traders began shifting from safe-haven assets like gold to high-performing tech stocks such as Apple and Tesla.
Phillip Streible, Chief Market Strategist at Blue Line Futures, noted:
“The market is starting to move past the tariff crash. Investors are rotating into growth stocks and away from gold and other safe havens.”
Technical Signals Suggest Gold Could Fall Further
Commodity strategists warn that gold may face further declines in the short term. According to Saxo Bank’s Ole Hansen,
“The sharp reversal from the $3,500 level raises the risk of a deeper technical correction.”
Gold’s recent price surge left it significantly overbought. Analysts believe this correction was overdue:
- Gold was 27% above its 200-day moving average, a rare occurrence.
- Historically, gold tends to retest its 200-day moving average within 3–6 months of such a move.
Jonathan Krinsky, Chief Market Technician at BTIG, stated:
“Every time gold has been more than 25% above its 200-DMA, it has eventually returned to test that level. The current 200-DMA sits at $2,729.81.”
Profit-Taking Likely Contributed to the Drop
David Morrison of Trade Nation explained that many traders were waiting for the $3,500 price mark to take profits. Once that level was reached, selling pressure increased, especially after Trump’s dovish comments on Powell and trade.
“Renewed optimism about the U.S.-China relationship reduced the need for gold as a hedge,” Morrison added.
Silver Prices Rise Amid Gold’s Decline
Interestingly, while gold tumbled, silver prices rose 1.9% to $33.518 per ounce, marking its third consecutive daily gain and the highest level in three weeks.
Year-to-Date Performance:
- Gold is still up nearly 25% YTD
- Silver has gained close to 16% YTD
- For April, gold is up 4.9%, while silver is down 2.7%
Outlook: Is the Gold Bull Run Over?
While Wednesday’s drop was significant, experts caution against calling the end of gold’s bull market just yet. The long-term demand for gold remains strong due to ongoing economic uncertainty, inflation concerns, and geopolitical tensions.
However, in the near term, investors should brace for continued volatility and potential pullbacks toward technical support levels.
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