On May 13, 2025, gold prices in India showed a small recovery after a major fall the day before. With reduced geopolitical tensions, safe-haven demand has declined significantly, causing MCX Gold June futures to drop to Rs 92,975/10 grams. This represents a substantial decrease of nearly Rs 6,500 from its April 22 peak of Rs 99,358/10 grams.

The previous day witnessed weakness in both domestic and international markets. Gold June futures settled lower at Rs 92,901 per 10 grams, declining by 3.75%, whilst silver July futures ended at Rs 95,344 per kilogram, down by 1.43%.

On Monday, gold prices dropped sharply—twice in one day. In the morning, the price of 10 grams of 24-carat gold fell by ₹1,800. Later that evening, it dropped again by ₹1,400. Altogether, gold lost ₹3,200 for every 10 grams, bringing the price down to ₹95,460. This was a big fall, and many people were surprised.

Experts say the main reason for the drop was a change in international and political situations. Tensions between India and Pakistan started to calm down, so people felt safer and didn’t feel the need to invest in gold. Also, on the world stage, the United States and China agreed to pause their tariff hikes for 90 days. This made investors more interested in stocks and other investments instead of gold, which is often seen as a “safe-haven” during uncertain times.