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After days of uncertainty in the global commodities market, gold and silver prices have recorded a steep fall following the recent trade agreement between the United States and China. The landmark deal, finalized during a high-level meeting between former U.S. President Donald Trump and Chinese President Xi Jinping in Busan, South Korea, has significantly impacted global precious metal rates.

According to market data, gold prices plunged by nearly ₹2,000 per 10 grams on Thursday, while silver saw an even sharper fall of over ₹1,600 per kilogram on the Multi Commodity Exchange (MCX). This drop has brought a wave of relief for potential buyers and investors, many of whom had been waiting for prices to cool down after months of record highs.

On Thursday morning, December futures gold opened on MCX at ₹1,18,665 per 10 grams, marking a decline of about ₹2,000 from the previous close of ₹1,20,666. Silver futures followed a similar pattern, opening at ₹1,44,402 per kilogram, down over ₹1,600 from the previous session where it was trading above ₹1.46 lakh.

Just a day earlier, both metals had shown signs of recovery after consistent declines. However, the fresh geopolitical and economic developments surrounding the US-China negotiations have once again triggered volatility in global markets.

Despite the latest drop, gold and silver prices had recently been touching new highs throughout 2025. However, since mid-October, both have seen a sharp correction.

• Gold has fallen by about ₹13,629 per 10 grams from its peak of ₹1,32,294.

• Silver has dropped nearly ₹26,013 per kilogram, slipping from its all-time high of ₹1,70,415.

Market analysts attribute this sudden fall to improving trade relations between the two largest global economies, which has reduced investor interest in safe-haven assets like gold and silver.

In India’s domestic market, the decline is equally visible. According to the Indian Bullion Jewellers Association (IBJA), 24-carat gold was priced at ₹1,26,714 per 10 grams on October 15. As of this Wednesday, it closed at ₹1,20,628 — a dip of ₹6,086 in just two weeks.

Silver prices, too, have taken a steep hit — dropping from ₹1,74,000 per kilogram to ₹1,46,633, marking a massive correction of ₹27,367 per kilogram. For consumers planning festive or wedding purchases, this dip presents an ideal window to buy.

The Busan meeting between Trump and Xi lasted over two hours and addressed several long-standing trade disputes. The U.S. agreed to reduce tariffs on Chinese goods from 57% to 47%, while China promised to resume purchases of American soybeans and cooperate on resolving the rare earth minerals issue.

This easing of tensions boosted investor confidence and led to a shift in capital away from gold and silver toward riskier assets like equities and bonds. As global trade prospects improved, the safe-haven demand for precious metals weakened, pushing prices downward.

Experts suggest that while this price correction offers short-term relief for buyers, volatility may continue depending on future policy announcements from major economies and central banks. If inflation cools and trade stability persists, gold and silver could remain under pressure in the near term.

However, long-term investors may still view the dip as an opportunity to accumulate precious metals at lower levels, especially given their traditional value as a hedge against uncertainty.