Gold rate today: MCX Gold prices climb as dollar eases; is it the right time to buy gold?

Gold rate today: Gold prices climbed in the domestic futures market on Friday morning, supported by a weaker US dollar following recent macroeconomic data indicating a slowdown in the US economy. MCX Gold June 5 contracts traded 0.46 per cent higher at ₹92768 per 10 grams around 9:20 AM.

The trade war triggered by US President Donald Trump's tariff policies has begun to show its impact on the US economy, straining supply chains, raising costs, and increasing unemployment.

As reported by Reuters, the US economy contracted for the first time in three years in the first quarter of the calendar year (Q1CY25). The US GDP contracted at a 0.3 per cent annualised rate last quarter. Meanwhile, US manufacturing contracted for a second straight month in April. The ISM's manufacturing PMI dropped to a five-month low of 48.7 last month from 49.0 in March.

The dollar index declined nearly 0.30 per cent, making the yellow metal cheaper in other currencies and enhancing its demand.

Gold prices: Increased volatility weighs on

MCX gold prices have moved downward in recent days due to increased volatility in the dollar, news related to the trade war, and macroeconomic data.

From its record high of ₹99,358 per 10 grams, hit on April 22, MCX Gold June 5 contracts had declined by ₹7,000 till the previous session amid signs of easing trade tensions between the US and its trading partners, especially China.

Trump said trade agreements could be reached with India, Japan, and South Korea and 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.

With peak anxiety about the trade war behind, investors' risk appetite improved, leading to profit booking in safe-haven assets and increased buying in equities.

Is it the right time to buy gold?

Experts expect gold prices to undergo further correction and suggest waiting for them to approach ₹90,000 per 10 grams before buying.

"Wait for some more corrections. Buy MCX Gold around ₹90,000 level," said Anuj Gupta, the head of commodities and currency products at HDFC Securities.

"Our year-end target for gold remains ₹97,000-98,000," Gupta said.

Some experts suggest buying the yellow metal around the ₹92,000 mark.

"We suggest buying gold around ₹92,200 with a stop loss of ₹91,780 for the target of ₹93,000," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

"Gold has support at $3,200-3,180, while resistance is at $3,250-3,280 per troy ounce, and silver has support at $31.84-31.40, while resistance is at $32.50-32.88 per troy ounce in today’s session. MCX Gold has support at ₹91,800-91,150 and resistance at ₹92,720-93,200, while silver has support at ₹94,000-93,350 and resistance at ₹95,200-96,000," said Jain.

Experts also suggest investing in gold via Gold ETFS as they are considered to be a low-cost investment.

In the medium to long term, gold prices may climb further due to central bank buying, geopolitical concerns, a trade war, and stagflation risks in the US.

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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.