Gold rate today: MCX Gold price jumps more than 2%; experts share strategy for bullion

Gold rates surged more than 2 per cent in Monday’s session, supported by the dollar’s weakness and healthy spot demand even as investors and traders kept a close eye on news flows surrounding the US-China trade tension. MCX Gold June 5 contracts traded 2.14 per cent higher at ₹94,615 per 10 grams around 4:50 PM.

International gold prices also rose by over a per cent with investors’ focus on the US-China trade talks and the US Federal Reserve’s policy outcome on Wednesday.

The dollar index declined about half a per cent as concerns over a looming recession in the US pressured the domestic currency.

The US GDP contracted at a 0.3 per cent annualised rate in the first quarter of 2025. US manufacturing contracted for a second straight month in April. The ISM’s manufacturing PMI dropped to a five-month low of 48.7 in April from 49.0 in March.

A weaker dollar makes gold cheaper in other currencies, which enhances its demand and supports prices.

While trade negotiations between the world’s two largest economies remain a key driver for the yellow metal, the focus has shifted to the US Federal Reserve’s economic projections and signals about its interest rate trajectory. The Fed is widely expected to keep rates unchanged on Wednesday.

Jateen Trivedi, VP Research Analyst—Commodity and Currency at LKP Securities, pointed out that gold prices surged sharply as expectations of a US Federal Reserve interest rate cut this week fueled strong buying.

“The rally is being supported by renewed risk aversion, a softer dollar, and anticipation around the Fed’s policy stance,” said Trivedi.

“Markets are keenly awaiting the FOMC decision, especially after recent public disagreements between President Trump and Fed Chair Jerome Powell regarding the rate path. A dovish tone or actual rate cut could push gold higher, while any hawkish surprise might trigger volatility,” Trivedi said.

Trivedi believes gold may remain volatile within the ₹93,000– ₹96,000 range in the short term.

Meanwhile, Reuters reported that US President Donald Trump said on Sunday that the “US was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.”

What should be your strategy for MCX Gold?

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests selling gold as he expects prices to remain volatile.

“We suggest selling gold on rise around ₹93,000-93,300 with a stop loss of ₹93,720 for the target of ₹92,200-91,850,” said Jain.

“Gold has support at $3,233-3,210, while resistance is at $3,280-3,300 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 ₹92,150-91,600 and resistance at ₹93,040-93,550, while silver has support at ₹93,350-92,500 and resistance at ₹94,800-95,500,” said Jain.

According to Renisha Chainani, the head of research at Augmont, if gold prices sustain below $3,210 (nearly ₹92,000) this week, they may fall towards $3,140 (nearly ₹90,500). On the higher side, $3,300(nearly ₹94,000) is the resistance level, which prices need to sustain to climb higher towards $3,360 (nearly ₹95,500).

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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.