Gold price today: Rates fall on easing US-China trade worries; experts highlight key levels for MCX Gold

Gold price today: Gold rates declined significantly in the domestic futures market Wednesday morning as easing US-China trade war concerns weighed on bullion prices. MCX Gold June 5 contracts traded 0.45 per cent lower at ₹93,230 per 10 grams around 9:10 AM.

International gold prices also declined on easing US-China trade war tensions.

The US and China have agreed to lower tariffs by 115 percentage points on each other to 30 per cent and 10 per cent, respectively, for 90 days as talks proceed to finalise a mutual pact.

According to Reuters, US President Donald Trump on Monday said he does not see tariffs on Chinese imports returning to 145 per cent after the 90-day pause, adding that he believes Washington and Beijing will have a deal.

Meanwhile, inflation trends in the US and India are turning favourable.

India’s retail inflation eased in April to its slowest pace in over six years. Retail inflation based on the Consumer Price Index rose 3.16 per cent year-on-year in April, down from 3.34 per cent in March, 3.61 per cent in February, and 4.83 per cent in the same month last year, according to data from the Ministry of Statistics and Programme Implementation.

US consumer prices rebounded moderately in April, leading to the smallest annual increase in four years. The US consumer price index increased 0.2 per cent in April after the 0.1 per cent decline in March. Economists polled by Reuters expected a 0.3 per cent rise in US CPI.

The focus now is on the Fed's preferred inflation gauge, the Producer Price Index data, due on Thursday.

Experts highlight key levels for MCX Gold, Silver

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, the US-China trade negotiations are supporting silver prices as an industrial metal, while a possible Russia-Ukraine ceasefire deal could limit gains for gold. The US 10-year bond yields also gained, which could cap upside for the bullion.

Jain expects gold and silver prices to remain volatile this week and suggests avoiding gold.

"We suggest avoiding buying gold. We suggest buying silver on dips around ₹95,800 with a stop loss of ₹95,100 for the target of ₹97,200," said Jain.

"Gold has support at $3,222-3,200, while resistance is at $3,274-3,300 per troy ounce, and silver has support at $32.80-32.55, while resistance is at $33.30-33.66 per troy ounce in today’s session," said Jain.

MCX Gold has support at ₹93,150-92,660 and resistance at ₹94,000-94,450, while silver has support at ₹96,000-95,350 and resistance at ₹97,400-98,200, Jain added.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,200-3,178, while resistance is at $3,255-3,270. Silver has support at $32.30-32.00 while resistance is at $32.90-33.20.

In rupee terms, gold has support at ₹92,250-91,780, while resistance is at ₹93,350-93,790. Silver has support at ₹94,380-93,550 while resistance is at ₹95,950-96,750, 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, as market conditions can change rapidly, and circumstances may vary.