Gold price today: MCX Gold hits record high as US Fed signals 2 rate cuts in 2025; experts unveil strategy for bullion

Gold price today: Gold rates jumped to fresh record highs in morning trade Thursday morning after the US Federal Reserve kept interest rates unchanged on Wednesday, March 19, but signalled the central bank could reduce rates two times in the current year. MCX Gold hit a record high of ₹89,796 per 10 grams in early deals on Thursday, March 20.

It, however, pared gains. Around 9:35 AM, MCX Gold for April 4 contracts traded at ₹88,934 per 10 grams, with a gain of 0.37 per cent.

For the second straight meeting, the US Federal Reserve kept its benchmark interest rate steady at 4.25-4.50 per cent.

However, US Fed chair Jerome Powell-led rate-setting panel projected two quarter-percentage-point rate cuts by the end of this year.

“The committee would be prepared to adjust the stance of the monetary policy as appropriate if risks emerge that could impede the attainment of the goals,” said the FOMC in its statement.

The US central bank also revised its economic growth and inflation estimates for the year, which is seen as supportive of gold prices.

According to a set of quarterly economic projections, the US Fed now expects the economy to grow more slowly this year and next than it did three months ago. Fed officials marked down their outlook for economic growth for this year to 1.7 per cent from the previous 2.1 per cent and 1.8 per cent in 2026.

US Fed policymakers now see their preferred measure of inflation ending the year at 2.7 per cent, compared to the 2.5 per cent pace anticipated in December.

US President Donald Trump's tariff policies have created significant uncertainty about the growth-inflation dynamics in the world's largest economy.

"The Trump administration's initial policies, including extensive import tariffs, appear to have tilted the US economy towards slower growth and at least temporarily higher inflation," Reuters quoted Federal Reserve Chair Jerome Powell saying so.

International gold prices surged to a record high after the Federal Reserve signalled the possibility of two interest rate cuts this year, enhancing bullion's appeal amid mounting economic and geopolitical uncertainties.

COMEX Gold touched an all-time high of $3,065.20, jumping 15 per cent year-to-date.

Domestic spot gold prices have surged over 16 per cent so far this year, significantly outperforming riskier equities. Meanwhile, the Indian stock market benchmark, the Nifty 50, has declined by more than 3 per cent during the same period.

Growing uncertainty over the economic impact of Trump's tariff policies, elevated geopolitical risks, the fall in the dollar index, central bank buying and demand from top consumers such as India and China have kept gold prices aloft.

Experts' strategy for MCX Gold

Manoj Kumar Jain of Prithvifinmart Commodity Research highlighted that the US Fed sees key interest rates ending this year at 3.9 per cent and rates falling further by the end of 2026 to 3.4 per cent and 3.1 per cent, respectively.

"There were no changes from the December policy meetings in the forward guidance of key interest rates but higher inflation and lower growth prospects could continue to support safe-haven buying for precious metals," Jain observed.

Jain expects gold and silver prices to remain volatile this week, given the volatility in the dollar index and concerns over a trade war.

According to Jain, gold has support at $3,022-3,008, while resistance at $3,055-3,080 per troy ounce. MCX Gold has support at ₹88,360-88,080 and resistance at ₹88,880-89,300.

" We suggest buying gold above ₹88,800 with a stop loss of ₹88,550 for the target of ₹89,300 and also suggest buying silver above ₹1,00,000 with a stop loss of ₹99,200 for the target of ₹1,02,000," said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,027-3,010 while resistance at $3,068-3,082. In the Indian rupee, gold has support at ₹88,340-87,980, while resistance at ₹89,050-89,450.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.