On May 13, shares of Senco Gold experienced a remarkable increase for a second consecutive day, ascending to the 5 percent upper circuit limit. This surge occurred amid a significant downturn in gold prices, which had recently soared beyond the ₹1,00,000 mark for 10 grams in India before facing a sharp decline. Investors are optimistic about a potential rise in demand and reduced input volatility following this notable drop in gold rates.

Gold Prices Take a Hit

On Monday, gold futures for June 2025 delivery on the MCX plummeted by over 4 percent, translating to a decrease of ₹3,930, ultimately closing at ₹92,588 per 10 grams. Early trading on Tuesday saw gold prices stabilize slightly, with the MCX Gold June contracts rising a mere 0.06 percent to ₹92,955 per 10 grams.

International Market Trends

Globally, gold prices also hovered near a one-week low after a steep decline on Monday. The downward trend in the yellow metal’s value is attributed to easing geopolitical tensions, following several diplomatic breakthroughs on the international stage.

Trade Agreements Impact Gold Prices

The unexpected announcement of a trade agreement between the United States and China has been a primary factor in the recent fall in gold prices. Both countries have committed to significantly lowering tariffs on each other’s imports for a 90-day period after extensive negotiations in Geneva.

• The U.S. has slashed tariffs on Chinese goods from 145 percent to 30 percent.
• China has reciprocated by reducing duties on U.S. imports from 125 percent to 10 percent.

This significant resolution marks a de-escalation of global trade tensions and mirrors a similar agreement reached between the U.S. and the U.K.

Furthermore, the easing of geopolitical risks has diminished the safe-haven demand for gold. A potential truce between Russia and Ukraine, along with a ceasefire agreement between India and Pakistan, has contributed to a wave of profit booking in the gold market.

Expert Insights on Gold’s Future

“The easing of global trade and geopolitical tensions has led to a substantial correction of nearly ₹4,000 in gold prices on the MCX,” commented Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities. He noted that with the dollar index climbing above 101.50, the allure of gold as a secure investment has waned. “Technically, gold now faces resistance around ₹94,000–95,000, with support near ₹90,000. If the current risk-on sentiment continues, further declines in gold prices are a possibility.”

Senco Gold’s Stock Performance

Senco Gold’s stock reached its 5 percent upper circuit limit at ₹369.95, marking the second consecutive session at this peak. Despite this recent upswing, the stock remains significantly below its 52-week high of ₹772, achieved in October 2024.

However, Senco Gold has rebounded impressively from its 52-week low of ₹227.70 recorded in March 2025, showcasing a remarkable gain of over 62 percent since then.

• In the past year, the stock has experienced a decline of approximately 20 percent.
• Yet, it appears to be on a recovery path, having increased by 5.7 percent so far in May after a robust 27.5 percent gain in April. This recovery comes on the heels of a prolonged downtrend that persisted from October 2024 to March 2025, during which the stock lost 62 percent of its value.

As Senco Gold navigates these turbulent market conditions, investor sentiment remains cautiously optimistic, highlighting the potential for growth in the coming months.