Gold prices dropped sharply on Wednesday amid weak global cues and cautious investor sentiment ahead of further clarity on US trade negotiations. The precious metal slipped over Rs 850 per 10 grams in the domestic market, while silver prices also saw a modest decline.

According to the latest data from the India Bullion and Jewellers Association (IBJA), 24-carat gold (999 purity) closed at Rs 96,085 per 10 grams, down Rs 887 from the previous close of Rs 96,972. Silver was priced at Rs 107,280 per kg, marking a Rs 220 fall from Rs 107,750.

Gold has been fluctuating between Rs 95,000 and Rs 96,500 per 10 grams in recent days, driven by geopolitical uncertainty and global economic developments. Analysts expect this volatility to continue in the near term.

“Gold is expected to remain volatile with a trading range seen between Rs 95,000 and Rs 96,500,” said Jateen Trivedi, VP Research Analyst-Commodity and Currency, LKP Securities.

Mirroring the spot market, MCX gold futures (August 5 expiry) fell by Rs 572 or 0.59% to settle at Rs 95,900 per 10 grams from the previous close of Rs 96,472.

On the international front, Comex gold also lost ground, settling at $3,294.0 per ounce, down 0.69% or $22.90. A stronger dollar and shifting sentiment around global trade developments weighed on the metal.

“Gold traded weak by another Rs 400 to hover near Rs 96,000 as Comex gold slipped below the $3,300 mark, pressuring global sentiment. Although the weaker rupee offered limited support to MCX gold, the overall trend remains bearish,” Trivedi added.

Investor mood has been impacted by US President Donald Trump’s aggressive tariff strategy, which includes a 50% duty on copper and 25–40% tariffs on goods from 14 countries, including Japan and South Korea. This has created fresh uncertainty in the global markets, leading to cautious movement in commodities and equities alike.

Meanwhile, Indian stock markets ended lower after a choppy session. The Sensex closed at 83,536.08, while the Nifty shed 46.40 points, or 0.18%, to finish at 25,476.10, dragged down by selling in IT and metal stocks.