Gold rate today: Gold prices lacklustre after US-China tariff deal; what should investors do?

Gold rate today: Gold prices were lacklustre in the domestic futures market on Tuesday morning, as the US-China trade deal boosted investor risk appetite for equities and dampened demand for safe-haven gold. MCX Gold June 5 contracts traded 0.06 per cent higher at ₹92,955 per 10 grams after crashing nearly 4 per cent to ₹92,901 per 10 grams.

International gold prices hit an over one-week low on Monday and traded near that level on Tuesday.

Gold prices fell after the US and China agreed to a trade deal, significantly reducing tariffs on each other, boosting market sentiment.

Authorities from the world's two biggest economies announced tariff reductions for the next 90 days after two days of negotiations in Geneva, Switzerland. The US reduced tariffs on Chinese imports to 30 per cent from 145 per cent, while China cut tariffs on US imports to 10 per cent from 125 per cent.

After the US-UK trade deal, the US-China trade deal has significantly subsided trade war jitters.

The 'uncertainty' factor on the global front, which is a key driver for gold prices, is rapidly fading now.

Apart from the US-China trade deal, easing tensions between India and Pakistan also weighed on gold prices.

"Gold and silver showed a heavy selloff at the start of the new week amid a trade deal between the US and China in Switzerland. The dollar index and the US bond yields jumped after the announcement of trade deals. The Indo-Pak ceasefire over the weekend also eases safe-haven buying for precious metals," Manoj Kumar Jain of Prithvifinmart Commodity Research observed.

The focus is now on the US Consumer Price Index report, expected later today, which will influence expectations about the US Federal Reserve's interest rate trajectory. India CPI data is also due on Tuesday.

Gold and silver: What should investors do?

Jain expects gold and silver prices to remain volatile this week amid volatility in the dollar index and due to geopolitical factors.

He suggests buying silver on dips and avoiding gold for a few days.

"We suggest buying silver on dips and staying away from gold for some trading sessions," said Jain.

He said gold has support at $3,200-3,180, while resistance is at $3,250-3,274 per troy ounce, and silver has support at $32.30-32.00, while resistance is at $32.94-33.30 per troy ounce in today’s session.

MCX Gold has support at ₹92,400-91,770 and resistance at ₹93,360-94,000, while silver has support at ₹94,400-93,650 and resistance is at ₹96,000-96,650, said Jain.

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 INR, Kalantri finds support for gold 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.

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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.