Gold price today: Rates drop on easing trade war jitters; experts share strategy for MCX Gold ahead of Akshaya Tritiya

Gold price today: Gold rates declined in the domestic futures market on Tuesday morning, a day ahead of Akshaya Tritiya, an auspicious day observed by Jains and Hindus for buying commodities, including the yellow metal. Easing trade war concerns, a strengthening US dollar, and investors' increasing risk appetite weigh on gold prices. MCX Gold June 5 contracts traded 0.84 per cent down at ₹95,219 per 10 grams around 9:15 AM.

International gold prices also fell on Tuesday as concerns over the trade war between the US and its trading partners subsided significantly, weighing on bullion's safe-haven appeal.

Investors also restricted their bets ahead of key US macro data this week, including the US job openings report later today, Personal Consumption Expenditures on Wednesday, and the non-farm payrolls report on Friday. These prints will influence expectations about the US Federal Reserve's interest rate trajectory.

Meanwhile, the rise in the US dollar also exerted pressure on gold prices. The dollar index climbed 0.20 per cent.

Why are gold prices falling?

The MCX gold price for June 5 contracts has declined by more than ₹4,000 from its all-time high of ₹99,358 per 10 grams, which it scaled on April 22. The yellow metal has witnessed profit booking at record highs as peak anxiety about the trade war has eased, hopes of rate cuts by the US Federal Reserve have faded, and demand fatigue has set in at elevated prices.

"Gold prices fell amid the US opening tariff talks with multiple nations and growing expectations of a possible China-US trade agreement. Optimism around a potential Russia-Ukraine peace deal further weighed on safe-haven demand for gold," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Experts' strategy for MCX Gold ahead of Akshaya Tritiya

Experts expect gold prices to remain volatile in the near term. They suggest waiting for stability before initiating fresh longs in the precious metals.

"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the key US macroeconomic data. We suggest waiting for some stability in the market to initiate fresh positions in gold and silver," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

According to Jain, gold has support at $3,320-3,288, while resistance at $3,370-3,400 per troy ounce and silver has support at $32.66-32.30, while resistance is at $33.30-33.70 per troy ounce in today’s session.

MCX Gold has support at ₹95,350-94,600, and resistance is at ₹96,650-97,280. Silver has support at ₹95,800-95,150 and resistance at ₹96,950-97,700, Jain said.

Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,310-3,288 while resistance is at $3,360-3,378. In INR, gold has support at ₹95,450-95,080 and resistance at ₹96,750-97,290. Silver has support at ₹95,680-94,850 while resistance is at ₹97,150-97,950.

On the other hand, for the long term, experts recommend a buy-on-dips strategy.

According to Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services, gold prices are expected to remain volatile this year.

Modi said risk-tolerant traders may continue to ride the current rally, while conservative investors may wait for a dip to accumulate positions for higher targets.

"We continue to recommend a 'buy on dips' strategy. Assuming a USD-INR exchange rate of 85, the immediate domestic price range is expected to hover between ₹96,500 and ₹1,00,000. From a longer-term perspective, a move towards ₹1,06,000 is also possible," said Modi.

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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.