MCX gold rate oscillates near ₹86,000. Is it time to buy yellow metal?

Gold rate today: Gold prices in India opened on a lower note on Wednesday, despite a weaker US dollar and global economic uncertainty driven by US President Donald Trump's tariff tensions.

The MCX gold rate opened lower at ₹85,931 per 10 grams and briefly hit an intraday high of ₹85,977 shortly after the market opened. However, the precious metal remains near its all-time high of ₹86,549 per 10 grams.

The precious metal has risen over 12 per cent so far this year, rising from ₹79,000 level.

Market experts note that while gold prices have dipped slightly today, the overall trend remains positive, making any significant decline a potential buying opportunity for investors. They mentioned that gold prices are currently stable as investors await the outcome of Donald Trump's speech in the US Congress. Additionally, the US dollar has hit a three-month low, which is likely to encourage buying at lower price levels.

“New tariffs of 25% on Canada and Mexico, and 10% on China, took effect on March 4, triggering retaliatory measures and boosting safe-haven buying. China imposed 15% tariffs on US agricultural goods and banned trade with certain defense companies, while Ottawa introduced phased levies on $107 billion worth of goods, and Mexico pledged countermeasures. Additionally, US Treasury yields fell as markets priced in potential Federal Reserve rate cuts. Today, gold is trading near $2,925, but sharp upside is limited as US Commerce Secretary Howard Lutnick suggested a possible tariff relief for Canada and Mexico. If an agreement is reached and levies are eased, it could put downward pressure on gold prices. Traders are also closely watching Services PMI data from major global economies and US private payroll numbers for insights into the global economic outlook,” said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities.

However, on Tuesday, the precious metal continued its gaining streak by opening at ₹85,399 per 10 gm and touched an intraday high of ₹85,518 within a few minutes of the opening bell.

Should you invest in yellow metal now?

According to Rahul Kalantri, VP Commodities at Mehta Equities Ltd, gold could surpass $3,000 internationally and ₹88,000 domestically, but whether they can hold at these levels is remains a critical concern.

Meanwhile, experts still recommend investors to follow ‘buying on dips’ strategy amid ongoing fluctuation.

"Given this bullish momentum, a "buy on dips" approach remains the best strategy. Any correction from the current ₹86,400 level toward ₹85,000- ₹84,000 presents fresh buying opportunities, as market sentiment remains firmly positive. Profit booking may emerge around the $3,050 per ounce level internationally or if trade tariff uncertainties subside. Until then, gold is well-positioned to extend gains, potentially reaching ₹87,500 in the near term," said Jateen Trivedi, VP Research Analyst-Commodity and Currency at LKP Securities.

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.