Gold rate today: Yellow metal reclaims 94K on MCX. Is this the right time to buy gold?

Gold rate today: Precious metal remained subdued in the domestic futures market on Tuesday morning, as the US-China trade agreement increased investor interest in equities, reducing the appeal of safe-haven assets like gold.

MCX Gold contracts were up by 1.22 per cent at ₹94,031 per 10 grams, after having dropped nearly 4 per cent to ₹92,901 per 10 grams earlier.

Gold prices declined following the trade agreement between the US and China, which involved substantial tariff reductions and improved overall market sentiment.

Officials from the world’s two largest economies agreed to lower tariffs for a 90-day period following two days of talks in Geneva, Switzerland. The United States reduced its tariffs on Chinese goods from 145 per cent to 30 per cent, while China decreased its tariffs on American products from 125 per cent to 10 per cent.

“Gold prices plunged sharply by approximately ₹4,000 to ₹92,500 on the MCX, following a significant de-escalation in global trade tensions. The U.S. and China agreed to lower tariffs—by 10% on U.S. products and 30% on Chinese goods—for a 90-day period to facilitate continued trade negotiations. This announcement triggered a sharp rally in the dollar index, which surged above $101.50, eroding the appeal of gold as a safe-haven asset,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Is it right time to buy gold?

According to NSE Market Pulse report, Gold has emerged as the best-performing asset class in FY25, with a 41 per cent/33 per cent return in USD/INR terms. Global gold demand has risen to a 15-year high of 4,974 tonnes led by a 25 per cent growth in investment demand.

Trivedi further said that in addition to the tariff relief, geopolitical tensions cooled with signs of a potential truce between Russia and Ukraine, and a ceasefire agreement between India and Pakistan.

“These developments led to heavy profit booking in gold, which had previously rallied on global uncertainty,” he said.

According to Trivedi, gold now faces immediate resistance in the ₹94,000– ₹95,000 range, while the next major support lies at ₹90,000. “With safe-haven demand fading, further downside cannot be ruled out if global risk sentiment remains stable,” he added.

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.