Gold price today: Rates jump on global uncertainty, stock market rout; experts highlight key levels for MCX Gold

Gold price today: Gold rates traded higher in the domestic futures market on Monday, supported by heightened fears over the impact of the global trade war. Deep losses in the stock market also made investors rush to the safe-haven asset. MCX Gold June 5 contracts were up 0.67 per cent at ₹88,661 per 10 grams at 5 PM.

International gold prices also traded higher on the prospect of an early rate cut by the US Federal Reserve due to the economic slowdown in the US. Comex Gold was up 0.80 per cent at 3,059 per troy ounce at 5 PM IST.

Speculation is high that the US central bank may announce an early rate cut in June amid the looming risk of a recession due to US President Donald Trump's sweeping tariffs against trade partners. Interest rate cuts are positive for gold prices.

Trump's tariff measures have impacted investors' sentiment globally. Gold, which tends to gain in times of uncertainty, also witnessed heavy selling due to concerns that a major trade war will hit global growth and dent demand for the yellow metal.

Newsflows around the trade war, macro data in the US, and demand trends will remain crucial factors for gold prices in the near term.

Experts expect some correction in gold prices

Some experts believe gold prices may see some correction this week due to margin calls in the stock market.

Brokers ask investors who buy shares using borrowed money (margin) to deposit more funds or sell some holdings during times of market crash. This is called a margin call in the equity market.

In times of high volatility or downtrend in the stock market, investors may sell their gold holdings to adjust losses in stock investments.

As the stock market witnesses sharp declines, investors are often forced to liquidate assets, including gold, to meet margin requirements and raise cash quickly. Due to this, gold prices see temporary pressure even though the yellow metal is a traditional safe-haven asset.

According to Renisha Chainani, the head of research at Augmont, gold prices appear to have peaked at about $3,200 (about ₹91,400).

Chainani believes a further sell-off towards $2,900 ( ₹85,000) may occur if prices remain below $3,000 ( ₹88,000). Otherwise, prices may settle this week between $3,000 (about ₹88,000) and $3,100 (about ₹90,000).

Anuj Gupta, the head of commodities and currency products at HDFC Securities, expects a correction in gold prices.

"For this week, international gold prices may come down to $3,000 per troy ounce, and MCX Gold may touch ₹87,000 per 10 grams. Trump tariff, weaker demand and margin calls in the equity market may keep gold prices under pressure in the near term," said Gupta.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the upcoming US CPI data will be crucial in shaping rate cut expectations, which could influence gold's direction globally.

Trivedi said the RBI policy meeting later this week will be closely watched domestically, as rupee volatility is likely to add another layer of uncertainty for MCX Gold.

"Gold is expected to remain highly sensitive to global cues and currency movement, with the short-term trading range likely to stay between ₹87,000 and ₹90,000," Trivedi said.

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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.