Gold price today: MCX Gold hits fresh record high; should investors buy or book profit?

Gold price today: Gold rates jumped to hit a new record high in the domestic futures market in Thursday's evening session on concerns over an escalating trade war between the United States and China.MCX Gold June 5 contract jumped over a per cent to hit a fresh high of ₹91,464 per 10 grams. Around 6:05 PM, the same contract was 1.60 per cent up at ₹91,236 per 10 grams.

International gold prices also rose on trade war uncertainty. Comex Gold jumped nearly 2 per cent during the session.

US President Donald Trump, on Wednesday, announced a 90-day pause on reciprocal tariffs while raising duties on Chinese imports to a staggering 125 per cent.

While Trump's temporary pause on reciprocal tariffs has come as a major relief for stock markets, his aggressive stance on China has raised fears that the world still faces the possibility of a major trade war between the world’s two largest economies — a development that could seriously impact global economic growth.

Gold prices tend to gain during times of geopolitical and economic uncertainty.

Central bank buying, strong retail demand and anticipation of rate cuts by the US Federal Reserve are additional factors supporting gold prices.

According to Bloomberg, Chinese investors invested a record amount into gold-backed exchange-traded funds (ETFs) last week.

"Inflows to four major onshore gold ETFs, including Huaan Yifu Gold ETF, hit a record of 7.6 billion yuan ($1 billion) last week, according to Bloomberg’s calculations, with strong inflows continuing this week," reported Bloomberg.

The minutes of the US Federal Reserve's last policy meeting showed that policymakers believe the US economy could experience stagflation—a situation of higher inflation and lower growth—and that the road ahead is challenging.

According to Reuters, the market is currently pricing in 84 basis points rate cuts by the US Fed by the end of the year.

Meanwhile, the US consumer price index (CPI) dropped 0.1 per cent month-on-month in March after gaining 0.2 per cent in February. On a year-on-year basis, US CPI rose 2.4 per cent in March after rising 2.8 per cent in February, Reuters reported, quoting the Labor Department's Bureau of Labor Statistics data.

Should you buy gold or book profit?

Experts appear positive about gold's outlook due to persisting global uncertainty.

Renisha Chainani, the head of research at Augmont, underscored that with tariffs exceeding forecasts and little indication of discussions, markets are rapidly pricing in the prospect of a worldwide recession.

"All-out trade war could force the global economy into a recession, triggering a new wave of risk-aversion trading and reviving demand for the safe-haven gold price," said Chainani.

"Despite the short-term fear, the medium- to long-term outlook for gold remains favourable. The current climate, which is characterized by volatility, economic uncertainty, and central bank buying, tends to favour gold," Chainani added.

Chainani pointed out that the gold active June contract has significant support at $3,000 (about ₹87,000).

However, Chainani added if prices sustain above $3,040 (nearly ₹88,700), it can head towards $3,100(nearly ₹89,700). If prices remain below $3,000, they may fall below $2,900 (nearly ₹84,500).

"Investors should buy gold on every dip," said Chainani.

According to Jateen Trivedi, VP, Research Analyst - Commodity and Currency at LKP Securities, in the near term, MCX Gold may remain on a roller-coaster ride within the broad range of ₹88,500 to ₹91,000.

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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.