Gold Price Today: Yellow metal down ₹7k from record high on MCX, spot gold hits two-week low over profit booking

Gold Price Today: The yellow metal dropped to a two-week low in international markets on Thursday, May 1, pressured by signals of softening trade tensions and a holiday in China, the world's top consumer. US President Donald Trump has begun trade negotiations with several nations.

Spot gold was last down 2.2 per cent at $3,216.41 an ounce, after hitting its lowest since April 14 earlier in the session. Gold prices hit a record $3,500.05/oz last week. US gold futures were down 2.8 per cent at $3,226.90.

Spot silver last fell 1.3 per cent to $32.15, platinum lost 1.2 per cent to $954.85, and palladium gained 0.4 per cent to $941.14. Back home, gold futures last traded 2.66 per cent lower at ₹92,350 per 10 grams on the Multi-Commodity Exchange (MCX). MCX gold futures for a June expiry are over ₹7,000 lower from their record-high of ₹99,358 per 10 grams.

Gold Price Today: What's dimming the yellow metal's shine?

-Analysts said a risk-on trade is underway, leading to some profit-taking in gold's safe-haven. Hints of upcoming trade deals, talks from China that the Trump administration had reached out to, dimmed the metal's appeal.

-Donald Trump said trade agreements could be reached with India, Japan, and South Korea. He added that there is a "very good chance" of securing a deal with China. A social media account affiliated with Chinese media said the US has approached China to seek talks over Trump's 145 per cent tariffs.

-Data on Wednesday showed that the US economy contracted in the first quarter, and the US personal consumption expenditures price index was unchanged in March. Now, all eyes are on the US nonfarm payrolls report, which is due on Friday.

-US Federal Reserve policymakers indicated interest rates would remain unchanged until there were clear signs of lowering inflation to the two per cent goal or potential job market deterioration. Lower interest rates and geopolitical uncertainty raise the appeal of non-yielding bullion.

-"While the short-term correction has been driven by improved market sentiment, the structural drivers underpinning gold's strength remain firmly in place," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.

Gold price outlook

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, “Gold tumbles as trade deal optimism triggers profit booking. Gold prices came under heavy selling pressure as Comex fell by $38 to $3,275, and MCX gold dropped ₹1,650 to ₹93,950.”

The sharp decline follows renewed optimism over global trade deals, particularly between the US and China, which significantly reduced safe-haven demand for gold. After a stellar 14 per cent rally in April driven by tariff tensions, experts say gold now faces the possibility of a 4–5 per cent correction as the market begins to price in the easing of trade risks.

“A confirmed US-China deal could be a major bearish trigger in the near term. Key support for gold on MCX is seen at ₹91,000, while resistance stands at ₹95,500,” added Trivedi. The US dollar rebounded from a one-year low to above 99.

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