Chennai: Gold prices saw a sharp correction of over Rs 2900 per 10 gm due to profit-booking on Wednesday after crossing Rs 1 lakh mark in the spot market on Tuesday. However, analysts believe that prices will bounce back with global uncertainties remaining unresolved.In the Delhi bullion market, gold was trading at Rs 98,700 per 10 gm against Rs 1,01,600 on Tuesday, falling by Rs 2900 per 10 gm. In the MCX, gold had started correcting on Tuesday itself after touching Rs 99,358. On Wednesday, it came down to a low of Rs 94,959 and was seen rebounding to Rs 95,700 levels.In the international market gold prices dropped from a high of $3498 per troy ounce to a low of $3305 and then moving up to $3330 as the US, China trade tensions were seen easing.“US President Donald Trump signalled a possible shift in his stand towards China and indicated that the steep tariffs on Chinese imports may be significantly reduced if a deal is reached. He is said 145 per cent is too high and it won’t be that high. The de-escalation of trade war tensions saw gold retreating,” said Ajay Kedia, MD, Kedia Commodities.Moreover, the dollar index also was seen gaining strength as Trump backed off from his earlier statement on removing Federal Reserve Chair Jerome Powell from his office. “Meanwhile, Russian President Vladimir Putin suggested that he is open to the potential of direct discussions with his Ukrainian counterpart Volodymyr Zelenskyy, enhancing expectations for a truce,” said Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions.“Technically gold was overbought and needed a correction. After rallying up over 30 per cent this year, prices need to cool down and we have usually seen 7-8 per cent correction in previous bull-runs. This could see gold moving down to Rs 92,000 levels,” said Kedia.However, the fundamentals that have been supporting gold have not fully reversed. A bounce back in prices is possible.JP Morgan predicts that gold prices will cross the $4,000 per ounce by the second quarter of 2026 driven by mounting recession risks, increased US tariffs, and ongoing tensions from the US-China trade war. The bank forecasts an average gold price of $3,675 per ounce by the fourth quarter of 2025, with a possibility of exceeding $4,000 earlier if demand outpaces expectations.