Gold price today: MCX Gold rate tops ₹84,000 mark; what should be your trading strategy for yellow metal?
Gold price today: Gold rates reached new record highs in the domestic futures market, with MCX Gold April 4 contracts surpassing ₹84,000 due to a declining dollar and strong demand in the domestic spot market.
Gold price today: Gold rates jumped to fresh record highs in the domestic futures market Wednesday morning, with the MCX Gold April 4 contracts rising over ₹84,000 mark for the first time, supported by the dollar's fall, renewed fears of US-China trade war and healthy buying in the domestic spot market.
MCX Gold for April 4 expiry rose to a record high of ₹84,154 per 10 grams, significantly surpassing the previous all-time high of ₹83,721. Around 9:20 AM, it was 0.36 per cent up at ₹84,098 per 10 grams.
International gold prices also hit a record high of $2,853.97 during Wednesday's session. Sentiment for safe-haven assets was boosted by fears of a renewed US-China trade war, which intensified after Beijing imposed tariffs on US imports in retaliation to new US duties on Chinese goods.
Why is gold rate rising today?
Fresh concerns over a new trade war between world's two largest economies- the US and China - have pushed investors towards safe-haven asset like gold.
According to Reuters, "China imposed targeted tariffs on US imports on Tuesday and put several companies, including Google, on notice for possible sanctions, in a measured response to Trump's tariffs."
On Tuesday, US President Donald Trump said he's in no rush to talk to Chinese President Xi Jinping about easing trade tensions between the two countries, the report further added.
Gold prices tend to gain amid economic and geopolitical uncertainty.
"The US imposed tariffs on China, and the Chinese government immediately retaliated against the US tariff and announced a set of tariffs on US imports, including a probe against Google. The US economic data released on Tuesday was disappointing and supports gold and silver prices," Manoj Kumar Jain of Prithvifinmart Commodity Research noted.
Meanwhile, the US dollar declined following China's tariff announcements, which also supported the yellow metal prices.
The dollar index has dropped by nearly 200 basis points, adding to gold’s upward momentum.
While Trump's tariff policies remain a key trigger for gold prices, experts say the suspension of tariffs against Mexico and Canada indicates Trump’s tariffs are a bargaining strategy rather than a final objective.
Is the rally in gold prices sustainable?
Trump's tariff policies, the dollar's movement and the US Fed interest rate trajectory, remain key triggers for gold prices going ahead.
"The 'Trump factor' has increased the uncertainty in the market. It is to be seen what happens when he gets his hands on the Middle East issues. His policies are not only fueling uncertainty but also increasing inflation risks, which, in turn, support gold prices," said Manav Modi, a commodity research analyst at Motilal Oswal Financial Services.
Consistent buying by central banks are also among key positive trigger for the yellow metal. With rising global uncertainty, this is likely to continue.
"Speculative and investment demand remains strong, with central banks continuing to buy gold, albeit at a slower pace," said Modi.
The rupee's depreciation is another key factor supporting gold prices.
While short-term corrections are likely as higher prices may curb demand, the long-term outlook remains bullish amid rising geopolitical uncertainty.
"Much will depend on how global tensions unfold and the US Federal Reserve's interest rate trajectory. Every dip presents a buying opportunity. Looking ahead, MCX Gold could reach ₹86,000 by year-end, while Comex Gold may test $3,000, with immediate resistance at $2,880–2,900," said Modi.
What should investors do?
Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week. He suggests buying silver around ₹95,100 with a stop loss of ₹94,400 for the target of ₹96,600.
"Gold has support at $2,854-2,840, while resistance at $2,888-2,900 per troy ounce and silver has support at $32.80-32.55, while resistance is at $33.30-33.50 per troy ounce in today’s session," said Jain.
"MCX Gold has support at ₹83,440-83,100 and resistance at ₹84,050-84,400, while silver has support at ₹95,000-94,400 and resistance at ₹96,300-97,000," Jain said.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,820-2,798 and resistance at $2,854-2,868. Silver has support at $31.76-31.58 and resistance at $32.22-32.40.
In INR, Kalantri finds support for gold at ₹83,670-83,450, while resistance is at ₹84,100-84,380. Silver has support at ₹95,050-94,450, while resistance is at ₹96,550-97,250.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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