Gold price today: Rates jump on softer dollar, rising US fiscal concerns; experts' strategy for MCX Gold

Gold price today: Gold rates jumped in the domestic futures market Thursday morning on a softer US dollar amid rising concerns over US debt. MCX Gold June 5 contracts traded 0.67 per cent higher at ₹96235 per 10 grams around 9:10 AM.

International gold prices jumped to their highest level since May 9, rising nearly 1 per cent.

Gold prices have regained momentum amid rising concerns over the US government's growing debt.

US President Donald Trump's tax and spending bill has raised fears that it will increase the US debt pile and have negative consequences for the US economy, which is already appearing to be under pressure.

"Trump's tax bill is expected to be voted on this week in Congress, and investors are worried it could add about $3.8 trillion to the $36 trillion US debt pile," reported Reuters.

Gold prices tend to rise in times of economic uncertainty.

Meanwhile, the US dollar traded lower, making gold cheaper in overseas currencies and enhancing the yellow metal's demand.

On the geopolitical front, reports of rising tensions between Iran and Israel also boosted safe-haven demand.

Meanwhile, Reuters reported that "Oman's foreign minister said a fresh round of nuclear talks between Iran and the US would take place later this week."

“Gold prices have rebounded as global risk sentiment, especially in the US, has weakened amid growing economic uncertainty. Ongoing ambiguity in trade negotiations, now at the halfway point of the 90-day pause, is further fueling market anxiety," said Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures.

Contributing to the cautious mood are rising US bond yields and the Federal Reserve’s reluctance to cut interest rates, both of which weigh on risk assets like equities. Additionally, escalating geopolitical tensions between Iran and Israel, as reported by some media outlets, are likely to sustain demand for safe-haven assets such as gold,” said Kamboj.

Experts' strategy for MCX Gold, Silver

Gold and silver prices are expected to remain volatile during the session. Experts suggest keeping a close eye on the key levels for the precious metals before betting on them.

Manoj Kumar Jain of Prithvifinmart Commodity Research says one may consider buying silver instead of gold.

"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and Middle East tensions. We suggest buying silver around ₹98,000 with a stop loss of ₹97,100 for the target of ₹99,200-1,00,000," said Jain.

According to Jain, gold has support at $3,284-3,260, while resistance at $3,334-3,358 per troy ounce and silver has support at $33.30-33, while resistance is at $34-34.40 per troy ounce in today’s session.

MCX Gold has support at ₹95,100-94,650 and resistance at 96,000-96,650, while silver has support at ₹97,400-96,650 and resistance at ₹99,100-1,00,000, said Jain.

According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, the short-term outlook for gold remains bullish, supported by macroeconomic instability, a weaker dollar, and robust physical demand.

"We do not rule out the possibility of gold testing $3,400/oz in the coming weeks. On the domestic front, MCX Gold (June contract) could target levels around ₹96,500 per 10 grams in June," said Trivedi.

Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,315-3,290 while resistance is at $3,360-3,378. Silver has support at $33.20-32.95 while resistance is at $33.74-33.90.

In INR, Kalantri said gold has support at ₹95,310-95,080, while resistance is at ₹95,950-96,240. Silver has support at ₹97,680-97,050, while resistance is at ₹98,950-99,750.

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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.