Gold rate today: MCX gold rate jumps amid uncertainty despite Modi-Trump meeting. US dollar, bond yields in focus
- Gold rate today witnessed some buying in early morning deals
Gold rate today: Amid uncertainty despite the Moid-Trump meeting, MCX gold prices witnessed some buying interest in early morning deals. The gold futures contract on Multi Commodity Exchange (MCX) for April 2025 expiry opened higher at ₹86,020 per 10 gm and touched an intraday high of ₹86,144 within a few minutes of the Opening Bell.
According to experts, the gold rate today is on an uptrend due to the economic uncertainty caused by US President Donald Trump's tariff rant. They said that the fall in the US dollar rates and US bond yields are also a reason for people looking at gold as a haven, which has fueled buying in the precious metal. Experts believe the world was looking at the kind of Modi-Trump meeting outcome, which probably failed to signal any flexibility in Donald Trump's protectionist policy. They added that precious metal has hit repeated record highs already this year, on a steady march toward $3,000 an ounce, thanks to increased demand for the safe-haven asset.
Trump's tariff policy in focus
Pointing towards the Modi-Trump meeting, Anuj Gupta, Head—Commodity & Currency at HDFC Securities, said, “It's not just India or the US; the entire world was looking at the kind of outcome from the most-awaited Modi-Trump meeting. Due to Trump's protectionist policy, gold has emerged as a safe-have as people move money from various assets to gold and US bonds. However, despite various defence and other deals, the market believes that the Modi-Trump meeting could break the ice on Trump's tariff turf.”
Echoing with Anuj Gupta's views; Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said, “The resilience in gold price is driven by ongoing global uncertainty, as market participants factor in the potential economic impact of US tariffs. The safe-haven appeal of gold continues to support its strength, keeping the broader bullish sentiment intact. As COMEX Gold price exceeded $2915 per troy ounce and MCX gold rate scaled above ₹85,850, the next hurdle for the yellow metal in the domestic market is now seen at ₹86,250 per 10 gm.”
“Gold price today tops $2,900 per ounce, the market is now saying, ‘Show me the money’,” said Imaru Casanova, a portfolio manager at Van Eck Associates. “As the gold price makes fresh highs, the market will be focused on the companies’ ability to expand margins.”
Modi-Trump meeting outcome
US President Donald Trump announced after talks with Prime Minister Narendra Modi that India will buy more oil, gas, and military hardware, including F-35 fighter jets, from America to reduce its trade deficit. However, Trump asserted that Washington will not spare New Delhi from reciprocal tariffs.
At his Oval Office in the White House on Thursday (Friday India time), Trump warmly welcomed Modi with a long handshake and a bear hug while describing the prime minister as a "great friend" for a long time and a "terrific" man.
The US president, at a joint media briefing with the Indian prime minister following the talks, said both sides are looking at striking a major trade deal soon while calling import duties imposed by India on certain US products "very unfair" and "strong".
"Whatever India charges, we will charge them," Trump said, adding, "We are reciprocal with India."
The Modi-Trump meeting took place hours after the US President announced a new reciprocal tariff policy for all the US trading partners, the latest in a series of such actions initiated by his administration.
In his remarks, Trump said he and PM Modi had reached an agreement that could potentially make the US the "number one supplier" of oil and gas to India, suggesting it to be part of measures to bring down the US trade deficit with India that stands at around USD 45 billion.
The US president also said that both sides have decided to expand the overall defence partnership.
"Starting this year, we will be increasing military sales to India by many billions of dollars," Trump said.
(With inputs from Bloomberg and PTI)
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