Gold price today: Rates rise on weaker dollar, Trump tariff concerns; experts highlight key levels for MCX Gold

Gold price today: Gold rates saw decent gains in the domestic futures market Monday morning, supported by softness in the US dollar and growing concerns that US President Donald Trump's tariff policies will result in a full-blown trade war. MCX Gold for April 4 contract traded 0.50 per cent higher at ₹84,637 per 10 grams around 9:10 AM.

The dollar index declined about 0.30 per cent, raising gold's appeal. As gold is priced in dollars, a decline in the US currency makes it cheaper in other currencies, increasing demand.

Trump's renewed tariff threats have heightened fears of a major trade war and rising inflation, boosting gold's appeal as a hedge against inflation and a safe-haven asset amid political and economic uncertainty.

According to Reuters, "US Commerce Secretary Howard Lutnick said on Sunday that tariffs on Canada and Mexico will go into effect on Tuesday. Trump said he would add another 10 per cent tariff on Chinese goods on Tuesday, effectively doubling 10 per cent duties imposed on February 4."

On the macroeconomic front, US consumer spending fell for the first time in nearly two years in January. Consumer spending dropped 0.2 per cent in January, marking the first decline since March 2023.

Moreover, the Personal Consumption Expenditures (PCE) price index increased 0.3 per cent in January. On a year-on-year basis, the PCE price index rose 2.5 per cent after increasing 2.6 per cent in December.

Experts say even though consumer spending has slowed, sticky inflation will keep the US Fed on pause mode for rate cuts in the near future.

Experts highlight key levels for MCX Gold

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week.

According to Jain, gold has support at $2,842-2,820 and resistance at $2,884-2,900 per troy ounce. Silver has support at $31.10-30.88 and resistance at $31.55-31.80 per troy ounce in today’s session.

MCX Gold has support at ₹83,820-83,500 and resistance at ₹84,500-84,850, while silver has support at ₹93,650-93,000 and resistance at ₹95,000-95,850.

Jain suggests waiting for some stability in the market before initiating fresh positions.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, the $2,840-$2,850 zone is crucial. A breach below $2,840 could lead to a further decline toward $2,800-$2,790 in the coming days.

On the MCX, ₹84,000 remains a key level, aligning with the 25-DMA, where market participants may look for signs of recovery, said Trivedi.

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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.