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Gold prices slipped sharply on Monday, falling by Rs 700 to Rs 1,25,900 per 10 grams in the national capital, following weak global cues as easing trade tensions between the US and China dented safe-haven demand.

According to the All India Sarafa Association, the yellow metal had gained Rs 1,000 to Rs 1,26,600 per 10 grams on Saturday.

Similarly, gold of 99.5 per cent purity dropped by Rs 700 to Rs 1,25,300 per 10 grams, compared to Rs 1,26,000 in the previous session.

In the local bullion market, silver witnessed a steep decline of Rs 4,250, settling at Rs 1,51,250 per kilogram, down from Rs 1,55,500 recorded on Saturday.

Manoj Kumar Jain, an expert on commodities, stated that both gold and silver extended their losses and breached key support levels amid easing trade tensions and a prolonged unwinding by traders ahead of the US Federal Reserve’s monetary policy meeting.

However, he noted that the market remains volatile and a short-term recovery cannot be ruled out.

Global investment bank Citi said gold has now reached its bearish target of $4,000 per ounce, adding that the next stop could be $3,800 per ounce, with material support likely around the 100-day level near $3,600 per ounce.

The bank attributed the continued weakness to President Trump’s shift towards dealmaking and the potential end of the US government shutdown, which are expected to reduce safe-haven demand for gold and put further pressure on prices in the near term.

In the international market, gold December futures settled at $4,019.70 per troy ounce, down 2.85 per cent, while silver December futures closed at $46.774 per troy ounce, down 3.73 per cent.

In domestic markets, gold December futures ended at Rs 1,20,957 per 10 grams with a 2.02 per cent decline, and silver December futures settled at Rs 1,43,367 per kilogram, down 2.78 per cent.

Jain added that gold prices slipped below the $4,000 mark during intraday trade on the Comex exchange but managed to hold above critical support levels at closing.

“Gold is holding its make-or-break level near $3,870, and silver is finding support around $46.50 per troy ounce,” he said.

Looking ahead, Jain expects gold and silver prices to remain volatile this week amid fluctuations in the dollar index, the upcoming Fed meeting, and the anticipated US-China presidential talks.

Gold is likely to trade between $3,940 and $4,280 per troy ounce, while silver is expected to move in the $46.00–$ 51.50 range.

In domestic markets, gold has support at Rs 1,20,000–1,18,800 and resistance at Rs 1,21,740–1,22,650, while silver has support at Rs 1,41,400–1,39,800 and resistance at Rs 1,45,000–1,46,650.

Jain advised investors to avoid fresh short positions, as the market appears oversold and a mild recovery could be seen in the near term.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi