Gold price today: MCX Gold hits record high on dollar’s weakness, trade war uncertainty; what should investors do?

Gold price today: MCX Gold hit a fresh record high of ₹96,875 per 10 grams in intraday trade on Monday, April 21, amid persisting concerns over the economic impact of the ongoing trade war. The dollar's weakness against its peers also supported gold prices. MCX Gold June 5 contract traded 1.62 per cent higher at ₹96,800 per 10 grams around 4:25 PM.

International spot gold prices also hit a record high of $3,384 during the session as investors continued rushing for safe haven assets on mounting concerns over the escalating US-China trade war.

The dollar's weakness is also a key factor supporting gold prices. The dollar index hit a three-year low, making gold more attractive to investors. Gold is priced in dollars. When the US currency weakens, gold is cheaper in other currencies, enhancing its demand.

In the previous session, MCX Gold prices fell 0.44 per cent to ₹95,239 per 10 grams on profit booking. However, trade war jitters triggered a fresh wave of buying on decline.

US President Donald Trump has announced a pause on reciprocal tariffs, but his stance against China has been aggressive. This has raised fears that a major trade war between the world's two largest economies will result in a prolonged period of weak global economic growth.

Meanwhile, according to Reuters, “White House economic adviser Kevin Hassett said on Friday that President Donald Trump and his team are still looking into whether they can remove Federal Reserve Chair Jerome Powell.”

Experts say Trump's move could raise questions over the US Fed’s independence and shake up global financial market sentiment.

Gold prices at record high: What should investors do?

Some experts suggest staying away from gold for some time, anticipating volatility due to the US-China trade war and the dollar's movement.

"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and the US-China trade war. We suggest staying away from taking fresh positions in gold and silver due to speculation about US-China trade deal negotiations," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

"Gold has support at $3,313-3,284, while resistance is at $3,364-3,388 per troy ounce in today’s session. MCX Gold has support at ₹94,750-94,280 and resistance at ₹95,550-96,000," said Jain.

Renisha Chainani, the head of research at Augmont, pointed out that gold's ascent could be stopped by a stronger US dollar, higher interest rates, or easing geopolitical fears. Also, after highs, profit-taking may cause some near-term corrections.

"Although the rise in the price of gold is in line with strong demand and of concern in economically uncertain situations, it is crucial to consider the composition of your portfolio and your risk tolerance. If you are overexposed, booking partial profits may be a good idea. If you are underexposed, gradually accumulating gold may work in your favour," said Chainani.

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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.