Gold price today: Rates rise on a weak dollar; experts highlight key levels for MCX Gold
Gold price today: Gold rates climbed in the domestic futures market Tuesday morning, tracking positive global cues and a fall in the US dollar. However, subdued demand from the domestic spot market capped the gains. MCX Gold June 5 contracts traded 0.08 per cent higher at ₹ 96,018 per 10 grams around 9:10 AM.
International gold prices traded near a two-week high, supported by a weaker dollar and concerns over the US fiscal outlook, reported Reuters.
The dollar index declined more than 0.20 per cent, making gold cheaper in overseas currencies, enhancing its demand.
Investors' focus is now on upcoming US macroeconomic reports, which will shape expectations about the US Federal Reserve's interest rate trajectory.
Gold prices have been consolidating of late as concerns over a trade war subside and geopolitical tensions ease. However, worries that the US fiscal deficit will widen after the tax-cut bill are supporting the yellow metal and weighing on the US dollar.
A Reuters report highlighted the Congressional Budget Office estimates, according to which, US President Donald Trump's tax-cut bill could "add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade."
Meanwhile, concerns over a trade war between the US and its trading partners have eased substantially. Trump has decided to delay a proposed 50 per cent tariff on imports from the European Union (EU) till July 9.
"Trump's move reduced safe-haven buying, while investors remain cautious amid erratic US trade policies and ongoing global tensions," Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services, pointed out.
Modi said persisting geopolitical instability and uneven trade signals continue to underpin gold's longer-term appeal.
"Germany's approval for Ukraine to strike inside Russian territory has escalated geopolitical risks. Adding to market jitters, Russia launched its third consecutive night of aerial attacks on Ukraine following the largest air assault of the conflict. Meanwhile, China's net gold imports via Hong Kong surged in April, more than doubling from March and hitting the highest level since March 2024," Modi noted.
(This is a developing story. Please check back for fresh updates.)
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