Gold price today: Rates drop after US court strikes down Trump's tariffs; experts' strategy for MCX Gold
Gold prices fell in the domestic futures market as a US court invalidated Trump's tariffs, reducing gold's appeal as a safe-haven investment. The US dollar's strength also contributed to the decline.
Gold price today: Gold rates dropped significantly in the domestic futures market in Thursday's session after a US federal court struck down President Donald Trump's tariffs, denting the yellow metal's safe-haven appeal. The strengthening US dollar also weighed on gold prices. MCX Gold June 5 contracts traded 0.66 per cent lower at ₹94,652 per 10 grams around 1:15 PM.
According to Reuters, "a US trade court on Wednesday blocked the enforcement of Trump's 'Liberation Day' tariffs, ruling the president exceeded his authority by imposing universal duties on imports from nations with a trade surplus with the United States."
Meanwhile, the US dollar jumped to 100.54, making gold expensive for holders of other currencies.
On April 2, Trump imposed reciprocal tariffs on nearly all of the country’s trading partners. However, many of these country-specific tariffs were put on hold just a week later.
Since then, the US administration has been engaged in trade talks with its allies. It has finalised temporary deals with China and delayed tariffs on the European Union until July 9.
Trump's tariffs and concerns over their potential negative impact on inflation and growth trends have been the key drivers of gold prices this year so far.
Investors' focus now is on the first quarter US GDP and core Personal Consumption Expenditures data later today. The US core PCE Price Index for the month of April is due on Friday. These prints will influence expectations about the US Federal Reserve's interest rate trajectory.
The minutes of the US FOMC's May meeting showed that Fed officials are concerned that US tariff policies could stoke inflation and slow growth in the coming months.
The US Fed sees a possibility of higher inflation this year due to tariffs, while the job market is likely to weaken significantly, creating a complex situation for the central bank as it tries to balance elevated inflation with the need to support growth and employment.
Meanwhile, India's Q4FY25 GDP prints are scheduled to be released on Friday.
Experts' strategy for MCX Gold
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold prices to remain volatile and suggests selling the yellow metal.
"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geopolitical tensions and ahead of the key US economic data. We suggest selling gold below ₹95,000 with a stop loss of ₹95,550 for the target of ₹94,200," said Jain.
According to Jain, gold has support at $3,288-3,264, while resistance is at $3,344-3,368 per troy ounce, and silver has support at $32.80-32.55, while resistance is at $33.45-33.70 per troy ounce in today’s session.
MCX Gold has support at ₹94,660-94,200 and resistance at ₹95,700-96,100, while silver has support at ₹96,650-96,000 and resistance at ₹98,000-98,850, Jain said.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,255-3,240 while resistance is at $3,300-3,322. Silver has support at $32.85-32.65 while resistance is at $33.35-33.55. In INR, gold has support at ₹94,910-94,580, while resistance is at ₹95,550-95,740. Silver has support at ₹96,480-95,750, while resistance is at ₹97,950-98,750.
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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.