Gold rate today: MCX gold price close to ₹1 lakh amid Trump-Powell interest rate fued, weak US dollar rate

Gold rate today: Amid rising tension between US President Donald Trump and the US Fed chief Jerome Powell over the US Fed rate cut, MCX gold rate hit a new peak of ₹99,358 per 10 gm on Tuesday. After climbing to this new peak, the MCX gold rate is less than ₹1,000 away from hitting a new landmark price of ₹1 lakh per 10 gm.

Weakness in the US dollar rates also supported the big upside opening of the yellow metal on the Multi Commodity Exchange (MCX). Gold futures contract on MCX for June 2025 expiry opened with an upside gap at ₹98,753 per 10 gm and touched an intraday high of ₹99,358 per 10 gm during Tuesday's deals.

The spot gold price oscillates around $3,482 per ounce, while the COMEX gold price is quoted at $3,495 per troy ounce. The US Dollar Index is around 97.86, nearly 0.19% lower than the previous day's close.

Trump-Powell interest rate tension

Speaking on the reason for the rise in gold rates today, Anuj Gupta, Head — Commodity & Currency at HDFC Securities, said, “The US President Donald Trump's recent criticism of the US Fed Chair Jerome Powell has pulled down the US dollar rates to a three-year low.  This is the major reason for gold prices today climbing to a new peak. However, increasing concerns about a global economic slowdown due to heightened US-China trade tensions is already there to fuel demand for gold as a safe-haven bet.”

Nigel Green, CEO of deVere Group, said, “Trump wants rates down—and soon. Powell isn’t budging. That brewing conflict has now burst into the open, and global investors are no longer waiting to see how it ends. The risk is now twofold. First, Powell holds the line, and policy stays restrictive longer than markets had priced. Second, Trump intervenes—publicly or politically—sparking concerns over central bank independence.”

"Gold prices extended their record-breaking rally as the fresh week started with strong early buying. Comex gold approached the USD 3,500 mark, while MCX gold registered its fresh all-time highs," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis support the rally. Trivedi said that continued buying from China, global central banks, and institutional investors has added momentum to the bullish sentiment.

Gold price outlook

Asked about the near-term targets of gold prices, Anuj Gupta of HDFC Securities said, “We are seeing spot gold price likely headed towards the $3540 and $3737 levels in the upcoming months, while in the domestic market, MCX Gold rates are expected to reach the ₹1,00,630 and ₹1,02,050 levels.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.