New Delhi, Apr 7: The effect of the newly announced reciprocal tariffs by US President Donald Trump is now being felt in the global commodity markets, with sharp declines seen in the prices of key commodities like gold and crude oil.

According to the Indian Bullion Jewellers Association (IBJA), the price of 24-carat gold on Monday fell sharply by Rs 2,613 to Rs 88,401 per 10 grams, down from Rs 91,014 on Friday.

Similarly, the price of 22-carat gold dropped to Rs 86,280 per 10 grams, while 18-carat gold is now priced at Rs 78,680 per 10 grams.

Silver prices also took a hit. A kilogram of silver declined by Rs 4,535 to Rs 88,375, compared to its previous price of Rs 92,910 per kg.

The fall in gold prices is largely due to a global decline in rates. The price of gold internationally has come down from its record high of $3,201 per ounce to $3,060 per ounce.

A similar trend is seen in silver, which dropped from $35 per ounce to around $30.40 per ounce.

Crude oil prices have also slumped amid concerns over a slowdown in global economic activity following the announcement of the trade tariffs.

On Monday, Brent crude was trading 2.12 per cent lower at $64.24 per barrel, while West Texas Intermediate (WTI) crude dropped 2.24 per cent to $60.61 per barrel.

Since the tariff announcement, crude oil prices have declined by nearly 14 per cent. Experts say this sharp drop is driven by fears that the global economy, particularly trade between major economies, may slow down, which could lead to reduced demand for oil.

In response to Trump’s tariffs announcement, China on Friday said it would impose an additional 34 per cent levy on American goods, which reinforced investor concerns that a full-scale global trade war is now underway.

While imports of oil, gas, and refined products have been exempted from Trump’s broad tariff measures, the new trade tensions could still lead to higher inflation, slower economic growth, and escalating disputes -- all of which are putting pressure on oil prices, experts noted.

(IANS)

read more Business news

Argus English | argus english | Odisha Latest News, Breaking News, Trending News, Live TV