Gold price today: MCX gold crashes over 2% amid a wider market selloff after China unveiled additional tariffs on US

Gold price today: Gold Futures on the Multi Commodity Exchange (MCX) of India dropped more than 2 per cent on Friday, April 4, amid a wider market selloff as investors become cautious over an escalating trade war between the United States and other nations.

Gold futures for the June 2025 contract dropped 2.17 per cent to ₹88,099 per 10 grams on Friday at 7:34 p.m. (IST), compared to ₹90,057 at the previous commodity market close.

This drop in the precious yellow metal comes after China unveiled its plans to impose 34 per cent tariffs on all imports from the United States in retaliation to Donald Trump's reciprocal tariff moves.

Gold futures on the MCX hit a new lifetime high on Tuesday, April 1, of ₹91,400 per 10 grams for the June contract. The all-time low level for the gold futures was at ₹77,078 per 10 grams, according to official data.

On the other hand, Silver prices plummeted 6.64 per cent to ₹88,127 per kilogram on Friday, compared to ₹94,399 per kilogram at the previous commodity market close.

Global Gold

Global spot gold prices in New York dropped as much as 2.4 per cent to $3,041.11 per ounce on Friday, as investors continued selling off the previous yellow metal with other asset classes on April 4, reported the news agency, Bloomberg.

“There is severe wealth destruction with an historic drop in market value of US stocks,” Nicky Shiels, head of research and metals strategy at MKS Pamp SA tolf the news agency. “Gold, despite it holding up as a solid haven recently, just isn’t immune to this major derisking reaction.”

According to the report, the price of the commodity has gained 16 per cent in 2025. Other metals, like silver, had prices that were down 6.8 per cent on Friday.

“We still see scope for further upside risks, given the current risk-off environment... we expect prices to hit further record highs in the second quarter,” Suki Cooper an analyst at Standard Chartered told the news agency Reuters.

Gold is considered a safeguard to be an asset which is safe against uncertain times in the market. The precious yellow metal is likely to thrive in a low-interest-rate environment.

According to the report, global investors are targeting a 120 basis-point interest rate cut from the US Federal Reserve starting June 2025.

China Tariffs

China on Friday announced its plans to impose 34 per cent tariffs on all imports from the United States effective April 11, which triggered a wider market selloff in equities and commodities as investor concerns rise about an escalating trade war between the US and other nations.

“The purpose of the Chinese government's implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfill international obligations such as non-proliferation,” said the Commerce Ministry of China, reported the news agency Reuters.

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