Gold rates today under pressure after rising 2% last week. Is it a right time to buy gold?
Gold rate today: Gold prices rose slightly in the domestic futures market on Tuesday morning, supported by upbeat global trends and a weaker US dollar. At around 9:10 AM, MCX Gold June 5 contracts were trading 0.08% higher at ₹ 96,018 per 10 grams.
On Monday, the MCX Gold June 5 was trading lower 0.73 per cent at ₹ 95,721 per 10 grams.
Gold prices have been consolidating recently as fears of a trade war diminish and geopolitical tensions lessen. Nonetheless, concerns about a growing US fiscal deficit following the tax-cut legislation are helping to bolster gold while putting pressure on the US dollar.
Gold prices on the MCX climbed 2 per cent last week, driven by a weaker dollar and growing worries about the US debt crisis.
'Gold was steady at the start of the week on the back of US and UK markets being shut, however the metal in the early morning trade has inched lower. European Commission trade chief Maros Sefcovic reported productive discussions with Trump administration officials, with both parties targeting a July 9 deadline for a trade agreement. Trump's decision to delay a proposed 50% tariff on European imports also eased immediate concerns. The combination of persistent geopolitical instability and uneven trade signals continues to underpin gold's longer-term appeal. Focus today will be on US durbale goods orders and consumer confidence data,' said Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd.
Gold saw profit booking as safe-haven purchasing eased after U.S. President Donald Trump announced he would postpone his intention to put 50% tariffs on imports from the European Union from June to July.
Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures, said, 'While upside momentum for bullion remains limited in the short term, ongoing concerns around the U.S. fiscal outlook, uncertainty over tariff negotiations, and geopolitical tensions in the Middle East are expected to support prices. Any further decline may present a strategic opportunity to accumulate gold as part of a diversified portfolio.'
However, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, believes that gold is expected to remain volatile with a trading range between ₹ 94,500 and ₹ 96,750.
'Market participants will closely monitor currency movements and global trade developments for further cues,' Trivedi said.
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.
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