Gold prices have declined by ₹1,400, falling to ₹95,960 per sovereign on Saturday, following a surge on Friday, where a single record-breaking hike of ₹2,440 landed the price at ₹97,360.

The price for 1 gram of 22 karat gold stands at ₹11,995 after dropping by ₹175. 18 karat gold is priced at ₹ 9,915 per gram, according to the All Kerala Gold and Silver Merchants Association, which sets the daily bullion rate based on international prices and domestic market conditions. Deviating from national trends, silver rose by ₹3 to an all-time high of ₹203.

As geopolitical tensions continue at the brink, the demand for gold, a safe-haven asset, was on the rise. However, a firmer dollar and US President Donald Trump's renewed stance claiming that "full-scale" Tariffs on China would be unsustainable have reversed the trend. 

Trump on Friday confirmed a meeting with Chinese President Xi Jinping, which eased the investors following an escalating trade conflict between the two nations.

As a traditional hedge against uncertainty, the asset witnessed a surge of more than 64% this year as international tensions unravel. Other forces that contributed to this trend include Central Bank buying, a switch out of the dollar, strong inflows into gold exchange-traded funds and the US interest rate cuts.

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