7 hours Ago
Gold rate today: Following US President Donald Trump's tariff flare, MCX gold rate edged higher and sustained above ₹ 86,000 per 10 gm. MCX gold rate today opened downside at ₹ 86,139 per 10 gm and touched an intraday high of ₹ 86,271, logging marginal gains against Tuesday's close of ₹ 86,152. In the international market, spot gold price is sustaining above $2,900 per ounce levels by quoting $2,918 per ounce.
COMEX gold price is at $2,924 per troy once. What's fueling gold prices today? On reasons for a rally in gold rates today, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, "Overall weak bias in the US dollar rates and escalating tariff concerns in the US signalled economic uncertainty. Safe-haven buying remained strong, with ETF inflows supporting the bullish sentiment.
Additionally, cooling US CPI data raised expectations of a potential rate cut from the Fed, further boosting gold’s appeal. The expected trading range for gold is ₹ 85,000 to ₹ 86,500." Donald Trump's tariff flare Trump said he was increasing the steel and aluminium tariff on Canadian goods to 50% to retaliate against Ontario’s move to levy electricity sent to the US, ramping up his fight with the US’s largest trading partner.
US equities pushed lower, and the dollar fell, helping lift bullions as much as 1.2% higher. Tariff headlines in recent weeks have created large swings in equities and kept investors on edge.
A slew of tepid economic reports in the US have also sparked fears of stagflation, where there’s an upside risk for inflation and a downside risk for economic growth. Altogether, traders were increasingly convinced that a trade-induced growth slowdown would lead the Federal Reserve to cut interest rates multiple times this year. “That’s going to be a tailwind for gold,” said Stephen Jury, global commodity strategist at JPMorgan Private Bank, in an interview.
According to Jury, increasing talk of the possibility of a recession in the US will likely lead to an environment where rates and the dollar may head lower. “That’s going to set up a very constructive scenario for a higher gold price in the second half of this year.” (With inputs from Reuters) Disclaimer: The views and recommendations given in this article are those of individual analysts.
These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions..
