Gold price today: Rates ease from record high on profit booking; what should be your trading strategy for MCX Gold?

Gold price today: Gold rates declined in the domestic futures market Monday morning on profit booking at record highs even as factors, including trade war fears, geopolitical tensions, and hopes of a rate cut from the US Federal Reserve persist as key support for the yellow metal. MCX Gold for April 4 contracts traded 0.26 per cent lower at ₹87,760 per 10 grams around 10:25 AM. It hit an all-time high of ₹88,310 per 10 grams in the previous session.

Heightened safe-haven demand due to a confluence of macroeconomic and geopolitical factors has pushed gold prices higher by about 14 per cent this year. In comparison, the Indian stock market benchmark Nifty 50 has declined over 5 per cent.

This year, the yellow metal has been on a record-hitting spree due to concerns over a global economic fallout due to US President Donald Trump's tariff policies, geopolitical tensions, signs of economic slowdown, and central banks' buying.

Gold prices tend to gain in times of economic and global uncertainty.

Experts say the current environment is supportive of gold prices.

The attack of the US military on Yemen's Houthi militants has created much uncertainty on the geopolitical front.

According to reports, the US defence secretary said on Sunday that the US would keep attacking Houthis until the Iran-aligned group ends attacks on ships in the Red Sea.

On the macroeconomic front, worrisome signs are emerging in the world's largest economy- the US.

According to Reuters, “US consumer sentiment plunged to a nearly two-and-a-half-year low in March and inflation expectations soared amid worries that Trump's sweeping tariffs would boost prices and undercut the economy.”

What should be your trading strategy for MCX Gold?

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week. At this juncture, Jain suggests buying silver instead of gold.

"We suggest buying silver around ₹1,00,000 with a stop loss of ₹98,800 for the target of ₹1,02,000," said Jain.

According to Jian, gold has support at $2,980-2,955, while resistance is at $3,022-3,040 per troy ounce. Silver has support at $34.00-33.68, while resistance is at $34.80-35.15 per troy ounce in today’s session.

Jain said MCX Gold has support at ₹87,550-87,200 and resistance at ₹88,320-88,600, while silver has support at ₹1,00,000-99,200 and resistance at ₹1,01,400-1,02,000.

According to Rahul Kalantri, VP of commodities at Mehta Equities, the fear of stagflation in the US could continue to drive bullion prices.

"Gold has support at $2,968-2,950 while resistance at $3,012-3,030. Silver has support at $33.65-33.35 while resistance is at $34.12-34.32. In the Indian rupee, gold has support at ₹87,640-87,420, while resistance at ₹88,240-88,410. Sliver has support at ₹99,850-98,950 while resistance at ₹1,01,820-1,03,250," said Kalantri.

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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.