Gold prices rose in the domestic futures market on Tuesday morning, driven by continued uncertainty surrounding US President Donald Trump’s tariff policies, increased spot market demand, and a largely stable US dollar. The MCX Gold for April 4 contracts traded 0.19% higher at ₹87,445 per 10 grams around 9:10 AM.
Ongoing global uncertainty, fueled by Trump’s tariff policies, rising geopolitical tensions, and expectations of US Federal Reserve (Fed) rate cuts, continues to influence gold prices. These factors are expected to remain significant drivers for the precious metal in the near future.
Domestic Spot Gold Prices Face Decline Amid Lack of Fresh Triggers
Despite the rise in MCX futures, domestic spot gold prices have been falling for five consecutive sessions. Prices have dropped by approximately ₹1,000, reflecting a lack of fresh market catalysts and a stable dollar index.
Trump’s tariff policies are playing a key role in market uncertainty. On Monday, the US president stated that not all tariffs he proposed would be imposed on April 2. Notably, automobile tariffs are still expected to take effect soon, though some countries may receive exemptions. This uncertainty is keeping gold prices elevated, as the metal typically benefits during periods of market instability.
US Fed Rate Cut Expectations Add to Gold’s Appeal
Another crucial factor supporting gold is the potential for further US Fed rate cuts. However, concerns about persistent inflation may slow the pace and extent of these cuts. According to a Reuters report, Atlanta Federal Reserve President Raphael Bostic expressed a more cautious outlook on inflation progress, suggesting that only a single 25-basis-point rate cut might occur by the end of this year.
The upcoming release of the Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, due this Friday, could serve as the next key trigger for gold price movements.
Expert Strategy for MCX Gold and Silver
Experts are advising cautious trading in gold and silver amid ongoing market volatility. Manoj Kumar Jain, a commodity analyst at Prithvifinmart Commodity Research, recommends selling gold around ₹87,500, with a stop loss of ₹87,800 and a target of ₹86,950. He expects gold and silver prices to remain volatile this week due to fluctuations in the dollar index and ongoing US trade tensions.
Jain sees gold support at $3,022-$3,008 per troy ounce, with resistance at $3,055-$3,070. For silver, he identifies support at $33.15-$32.80, with resistance at $33.74-$34.00 per troy ounce.
In the domestic market, MCX Gold has support at ₹87,000-86,650 and resistance at ₹87,550-87,800. Silver has support at ₹96,650-96,100 and resistance at ₹98,000-98,850.
Further Insights on Gold and Silver Price Ranges
Rahul Kalantri, Vice President of Commodities at Mehta Equities, offers additional insights, noting that gold has support at $2,988-$2,970, with resistance at $3,028-$3,048. For silver, he sees support at $32.75-$32.55 and resistance at $33.24-$33.48.
In INR terms, Kalantri highlights that gold has support at ₹86,940-86,680 and resistance at ₹87,510-87,680. Silver has support at ₹96,750-96,050, with resistance at ₹98,620-99,350.
As geopolitical tensions and US economic policies continue to shape the market, gold and silver remain sensitive to global economic developments, with investors advised to stay alert to upcoming economic data releases.
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