Gold price today: Yellow metal jumps nearly 2% as geopolitical, trade war worries spark safe-haven demand

Gold Price Today: Gold prices on India's Multi Commodity Exchange (MCX) jumped nearly 2 per cent on Monday, 2 June 2025, as investors moved back to safe-haven assets due to heightened geopolitical tensions and trade war worries.

Gold futures of the 5 June 2025 contract jumped 1.7 per cent or ₹1,630 per 10 grams to hit an intraday high of ₹97,505 per 10 grams on Monday's commodity market session, compared to ₹95,875 per 10 grams in the previous market close last week. US-based Comex gold was up 1.74 per cent at $3,373 on Monday as of 6:42 a.m. (EDT). 

Investors tend to pull out their money from high-risk investments like the equity markets in case of geopolitical uncertainties in the global market. Safe-haven assets like gold and government treasuries are the focus of global market investors.

Donald Trump, at a rally in Pennsylvania, announced his plans to double the tariffs on steel imports into the United States from 25 per cent to 50 per cent from next week. On the other hand, Ukraine launched a drone attack on Russia, reportedly destroying more than 40 military aircraft on Sunday, 1 June 2025. 

Gold Shines

Deveya Gaglani, a senior research analyst of commodities at Axis Securities, attributed the rise of the precious yellow metal gold to the intensifying geopolitical tensions between Russia and Ukraine after the drone attack on Sunday, 1 June 2025.

“The better-than-expected consumer data print from the USA and a mild recovery in the dollar index led to selling in the counter. During the weekend, geopolitical tension intensified between Russia and Ukraine after Russian warplanes were damaged due to a Ukrainian drone attack. This led to a gap-up opening in the MCX,” said the commodity market expert.

Key levels for Gold

Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said that commodity markets will focus this week on U.S. manufacturing PMI, non-farm payrolls, and the unemployment rate, among other things.

“Gold reacted sharply to renewed geopolitical tensions, as Ukraine launched retaliatory strikes following intensified Russian offensives. This escalation triggered safe-haven buying, lifting Comex gold by $50 to $3,350 and MCX gold by ₹1,300 to ₹97,250,” said the commodity market expert.

The experts pegged the key levels for MCX gold prices to have support at ₹94,000, with the resistance expected between ₹98,500 to ₹99,000 levels.

“With safe-haven momentum returning and a heavy data calendar ahead, gold may look to test the $3,400 level. Support is seen at $3,250 on Comex and ₹94,000 on MCX, while resistance is expected between ₹98,500 to ₹99,000,” said Trivedi.

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