Gold price today: Rates rise on prevailing uncertainty over Trump’s tariffs; experts highlight key levels for MCX Gold

Gold prices climbed in the domestic futures market Tuesday morning, supported by prevailing uncertainty over US President Donald Trump's tariff policies and concerns over a looming recession in the world's largest economy. MCX Gold June 5 contracts were up 0.16 per cent at ₹93,397 per 10 grams around 9:10 AM. Gold rates have jumped 5 per cent in the domestic spot market in April so far.

On Monday, the yellow metal saw some profit booking as the MCX Gold June futures contract slipped by half a per cent, settling at ₹93,252 per 10 grams. However, it witnessed fresh buying on Tuesday morning as concerns over the impact of the trade war on global economic growth kept investors interested in the safe-haven asset.

There is much uncertainty surrounding Trump's tariff policies, which are keeping the stock market and gold prices volatile.

After announcing a 90-day pause on reciprocal tariffs, Trump has indicated that exemptions are temporary. Meanwhile, media reports suggest he may announce tariffs on semiconductors imports next week.

According to Reuters, “Trump said on Sunday he would be announcing the tariff rate on imported semiconductors over the next week, keeping market participants on edge.”

Apart from tariff uncertainty, gold prices are rising on expectations of rate cuts by the US Federal Reserve. With growing concerns over an economic slowdown, the Fed may resume rate reductions in June.

Heavy inflows in Chinese gold exchange-traded funds (ETFs) are also a key factor underpinning gold prices.

"Investment flows into Chinese physically backed gold ETFs so far this month have exceeded those for all of the first quarter and overtaken inflows registered by US-listed funds, World Gold Council data showed," reported Reuters.

The weakening US dollar index is also a key positive for gold.

"Investors seeking safety drove up gold prices, aided by a weakening US dollar index, which fell below 100 for the first time in over three years. The US dollar is falling across the board as markets react to China's new reprisal against US imports," said Renisha Chainani, the head of research at Augmont.

“Contrary to Wall Street's expectations, the dollar has declined over 7 per cent since Trump's inauguration and over 2 per cent since his comprehensive trade policy was announced last week,” Chainani observed.

Chainani underscored that the rationale for increasing gold allocations is stronger than ever in this climate of rising tariff uncertainty, poorer growth, increased inflation, and persisting geopolitical dangers.

The evolving global trade, economic, and geopolitical landscape strengthens gold's position as a safer investment haven.

Experts highlight key levels for MCX Gold, Silver

"If dollar weakness continues, the gold price could reach $3,300 (nearly ₹95,000) in the near term. Having said that, one needs to be very cautious, as prices have extended through the roof in a short span. So, if prices correct below $3,200 (nearly ₹93,000), profit-booking can take prices to southwards $3,100 (nearly ₹90,000)," said Chainani.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week.

"Gold has support at $3,200-3,184, while resistance at $3,244-3,268 per troy ounce and silver has support at $31.80-31.40, while resistance is at $32.50-32.84 per troy ounce in today’s session," said Jain.

"MCX Gold has support at ₹92,770-92,220 and resistance at ₹93,660-94,000, while silver has support at ₹94,000-93,350 and resistance at ₹95,500-96,650," Jain said.

He suggests buying silver around ₹94,000 with a stop loss of ₹93,220 for the target of ₹95,500.

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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, as market conditions can change rapidly, and circumstances may vary.