Gold rate India today: Yellow metal crashes nearly ₹4,500 in 3 days on MCX. Opportunity to buy in this correction?

Gold rate today: A day after posting a healthy gain of over 1 per cent, the MCX Gold June 5 contract declined more than 1 per cent in intraday trade on Friday, April 25, as investors booked profits amid easing concerns over the global tariff war. Around 6 PM, the June 5 gold contract on MCX was trading 0.86 per cent lower at ₹95,089 per 10 grams, after hitting an intraday low of ₹94,902.

From its all-time high of ₹99,358 per 10 grams on April 22, the contract has now dropped over ₹4,450 in just three days.

International gold prices also dropped more than 1 per cent on Friday amid reports that China was considering relief to some US imports.

Gold prices are witnessing profit booking globally as hopes for a trade truce between the US and China grow stronger.

A Reuters report suggested that “China may exempt some US imports from its 125 per cent tariffs and is asking businesses to identify eligible goods.”

Earlier, US President Donald Trump said that trade talks with China were underway.

The Trump administration is negotiating with its trade partners globally, and expectations are high for favourable trade deals.

"Growing expectations of a possible trade thaw between the US and China triggered the recent downside. Notably, China signalled a softer stance by reducing the 145 per cent tariff on select US products, hinting at potential willingness to negotiate. This shift in tone has reduced the safe-haven premium on gold," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Meanwhile, the dollar's gains also weighed on gold prices. The dollar index rose 0.3 per cent. Since gold is priced in dollars, a stronger US currency makes the yellow metal more expensive for overseas buyers, denting its demand.

Concerns over a major trade war between the US and its trading partners have been a key catalyst for driving up gold prices this year. Dollar's weakness, central bank buying and robust inflow in Chinese gold ETFs amid heightened stock market volatility have also supported gold prices globally.

Domestic spot gold prices, which hovered around ₹76,000 on December 31 last year, have surged nearly ₹20,000—or about 26 per cent—so far this year.

Is the recent correction an opportunity to buy gold?

While the medium-term outlook for gold remains positive, prices are expected to stay volatile in the short term, reacting to news flows related to Trump’s tariff policies and geopolitical developments.

"Given the lack of clarity and persistent tariff-driven tension, gold will likely remain highly volatile. Price action between ₹94,000– ₹97,000 on MCX can be expected over the next two sessions, offering trading opportunities on both long and short sides," said Trivedi of LKP Securities.

“If trade discussions progress further, gold could remain under pressure, especially if the $3,300 support in Comex is breached. The metal may witness further unwinding of long positions in the near term, with volatility driven by fresh headlines around tariff policy,” Trivedi said.

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests booking profits in long positions of gold and buying silver around ₹97,000 with a stop loss of ₹96,400 for the target of ₹98,200.

“Gold has support at $3,310-3,284, while resistance is at $3,374-3,400 per troy ounce, and silver has support at $33.20-32.84, while resistance is at $33.88-34.40 per troy ounce in today’s session,” Jain said. 

"MCX Gold has support at ₹95,250-94,400 and resistance at ₹96,600-97,280, while silver has support at ₹96,850-96,200 and resistance at ₹98,200-99,100," said Jain.

Analysts at Way2Wealth Brokers have a neutral view on gold.

They highlighted that MCX Gold remains in an uptrend in both the long- and short-term. However, it has shown multiple RSI divergences on the daily chart and has also witnessed selling on increased volumes.

According to Way2Wealth, while sell-offs are occurring on high volumes, rallies are happening on lower volumes. This is an early warning sign for bulls.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,315-3,288 while resistance is at $3,375-3,398. Silver has support at $33.10-32.70 while resistance is at $33.75-34.05.

In INR, Kalantri finds support for gold at ₹95,450-95,080 and resistance at ₹96,650-97,090. Silver has support at ₹96,680-95,750 and resistance at ₹98,450-99,250.

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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.