Gold price today: Rates climb as US fiscal worries mount; experts unveil strategy for MCX Gold

Gold price today: Gold rates rose in the domestic futures market on Friday morning amid positive global cues, as concerns over US debt and the economic fallout of the tax bill persist. However, tepid demand from the domestic spot market capped the gains. MCX Gold June 5 contracts traded 0.10 per cent up at ₹95,612 per 10 grams around 9:10 AM.

International gold prices looked set to end the week with gains amid a softer dollar and rising concerns about the US's deteriorating fiscal outlook.

The dollar index has declined by over 1 per cent this week. It looks set to suffer its worst weekly loss since April 7.

Since gold is priced in the US dollar, the weakness of the greenback makes the yellow metal cheaper in overseas currencies, enhancing its demand.

At the current juncture, the key trigger for gold is the economic outlook of the world's largest economy. After Moody's credit rating downgrade, President Donald Trump's sweeping tax and spending proposal has raised concerns that it will widen the US fiscal deficit.

The US House of Representatives passed a sweeping tax and spending bill on Thursday.

Aksha Kamboj, Vice President, India Bullion and Jewellers Association, and Executive Chairperson, Aspect Global Ventures, pointed out that gold prices have remained relatively steady, even as risk assets like equities have come under pressure due to growing concerns over the rising US budget deficit. This has driven treasury yields higher on Wall Street.

"Several factors could support a potential rally. The possible implementation of Donald Trump’s proposed tax cuts, which may further widen the US budget deficit, along with escalating tensions in the Middle East involving Israel, Iran, and the Houthis, could act as catalysts for upward movement in gold prices,” said Kamboj.

Experts' strategy for MCX Gold, Silver

Despite volatility in prices, experts largely appear positive about gold and suggest buying on dips.

"We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and in the global bond markets and due to Middle-East tensions. We suggest buying a dip strategy for gold and silver amid higher volatility in the global financial markets," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Jain said gold's trading range for today could be ₹94,600-96,650 and for silver, ₹96,300-99,300.

"Gold has support at $3,268-3,240, while resistance is at $3,334-3,358 per troy ounce, and silver has support at $32.84-32.40, while resistance is at $33.55-33.80 per troy ounce in today’s session," said Jain.

"MCX Gold has support at ₹95,050-94,600 and resistance at ₹96,000-96,650 while silver has support at ₹97,000-96,300 and resistance at ₹98,500-99,300," Jain said.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,278-3,260 while resistance is at $3,325-3,345. Silver has support at $32.70-32.55 while resistance is at $33.30-33.50.

In INR, gold has support at ₹95,110-94,880 while resistance is at ₹95,950-96,240. Silver has support at ₹97,180-96,650, while resistance is at ₹98,950-99,750.

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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.