Gold price remains volatile amid global trade war buzz; Can it fall further? Experts weigh in

Gold prices on the Multi Commodity Exchange (MCX) climbed on Monday due to increased safe-haven demand triggered by a global stock market downturn. On the MCX, gold was up by ₹301 or 0.34%, reaching ₹88,376 per 10 grams, while silver surged ₹1,487 or 1.71%, trading at ₹88,698 per kilogram.

Gold and Silver dropped more than 3% on Friday as investors sold off bullion to cover their losses from a wider market meltdown as an intensifying trade war sparked concerns of a global growth slowdown.

“Global financial markets are going through significant turbulence right now, triggered by many reasons. In such uncertain times, traders and investors should stay calm, avoid knee-jerk reactions, and wait for clear directional cues. Risk management and capital preservation should be the top priorities,” said Rahul Kalantri VP commodities at Mehta Equities Ltd.

In the international market, gold futures slipped by 0.55 per cent, trading at $3,021.51 per ounce in New York.

Gold prices in international markets dropped to their lowest point in over three weeks, as a broader market sell-off—sparked by U.S. President Donald Trump’s tariff policies—affected bullion traders.

Can gold prices crash further?

Market experts believe that Gold frequently faces initial pressure during periods of heightened risk aversion. This is because market players frequently sell their gold holdings to make up for losses in other areas. Typically, gold recovers its losses quickly, and this time might be no exception.

“In the short run, gold prices appear to have peaked at about $3200 (~ ₹91400). A further sell-off towards $2900 ( ₹85000) may occur if prices remain below $3000 (~ ₹88000). If not, prices are predicted to settle this week between $3000 (about Rs. 88,000) and $3100 (about Rs. 90000),” said Renisha Chainani, Head - Research at Augmont, in Augmont bullion weekly report dated April 7.

How to trade gold amid volatile market?

Rahul Kalantri of Mehta Equities Ltd recommends investors to avoid fresh investments and advises short-term investors to consider gradual profit booking.

“We do not recommend fresh investments at this level. Short-term investors who entered the market 1-2 years ago should consider gradually booking profits. Chasing an extra 7-10% return could put existing handsome gains at risk. Long-term investors may find opportunities during dips, especially if global risks remain elevated that gives benefit to gold prices. Short term investors look these levels as a support $2965 & $2840 while resistance at $3150,” Kalantri said.

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.