Gold prices closed down 0.5% at ₹95,937 as investors felt less need to buy gold for safety. The decline came after the president delayed the planned 50% tax on European imports. The tax, which was supposed to start on June 1, has now been pushed back to July 9.
The US President also warned Apple (NASDAQ:AAPL) that it could face a 25% tax if it does not move iPhone production to the US, which caused some market jitters.
While gold fell today, it gained about 5% last week on continued concerns about the US economy. If they pass a new tax bill that could increase the US deficit by almost $3 trillion over 10 years, gold could rebound in the long term.
Gold imports via China and Hong Kong more than doubled in April, reaching 58.61 metric tons from 21.07 tons in March, on strong demand. Meanwhile, in India, higher global prices and a weak rupee led dealers to offer discounts of up to $49 per ounce, but actual demand remained subdued.
