Posted on May 29, 2025, by Niftynews
Gold Price Today witnessed a notable drop in the domestic futures market, falling below the key ₹95,000 level on Thursday, May 29, after a major legal development in the U.S. shook investor sentiment.
A U.S. federal court struck down the controversial Trump-era ‘Liberation Day’ tariffs, undermining the safe-haven appeal of gold. At the same time, a strengthening U.S. dollar has made gold more expensive for foreign currency holders, further pressuring prices.
As of 9:05 AM IST, MCX Gold June 5 contracts were trading at ₹94,779, down 0.52%.
Why Did Gold Price Drop Today?
According to Reuters, the U.S. Court of International Trade blocked the enforcement of former President Donald Trump’s universal import tariffs, stating he exceeded presidential authority by targeting countries with trade surpluses arbitrarily.
This news sent ripples through global markets, as investors reassessed the inflation and geopolitical risks that previously made gold a favored hedge.
Additionally, the U.S. Dollar Index (DXY) surged to 100.54, its highest in weeks, adding to the downward pressure on the yellow metal. A strong dollar typically weakens gold demand globally, especially in non-dollar currencies.
What Does This Mean for MCX Gold and Silver?
MCX Gold has remained sensitive to global macroeconomic shifts and U.S. monetary policy developments. Thursday’s price action was driven by a combination of:
- Reduced inflation expectations after the court decision
- Upcoming U.S. economic data releases (Q1 GDP and Core PCE Price Index)
- Continued dollar strength
- Domestic uncertainty ahead of India’s Q4FY25 GDP data
Market Expert Views on Gold Price Today
🟠 Manoj Kumar Jain – Prithvifinmart Commodity Research
“Gold and silver prices are expected to stay volatile this week due to U.S. economic data and geopolitical uncertainties. Traders should consider selling gold below ₹95,000.”
Jain’s MCX Gold Strategy:
- Sell below ₹95,000
- Stop-loss: ₹95,550
- Target: ₹94,200
Support & Resistance (MCX Gold & Silver):
| Commodity | Support Range (₹) | Resistance Range (₹) |
|---|---|---|
| Gold | 94,200 – 94,660 | 95,700 – 96,100 |
| Silver | 96,000 – 96,650 | 98,000 – 98,850 |
Global Price Levels (per troy ounce):
| Commodity | Support Range ($) | Resistance Range ($) |
|---|---|---|
| Gold | 3,264 – 3,288 | 3,344 – 3,368 |
| Silver | 32.55 – 32.80 | 33.45 – 33.70 |
🟠 Rahul Kalantri – Mehta Equities
“Gold has technical support at $3,240 and resistance at $3,322. In INR, the support lies at ₹94,580, and resistance at ₹95,740. Expect price consolidation before key U.S. data releases.”
Kalantri’s INR Gold Strategy:
- Support: ₹94,580 – ₹94,910
- Resistance: ₹95,550 – ₹95,740
What Are Traders Watching Next?
🔹 U.S. Economic Data (Later Today and Friday):
- Q1 GDP estimates
- Core Personal Consumption Expenditures (PCE) Price Index
- U.S. Fed’s inflation and employment outlook
The outcome of these data points will shape expectations for the Federal Reserve’s interest rate path, with markets split on whether rate cuts are likely in the second half of 2025.
🔹 India’s Q4 GDP Data:
Due Friday, India’s GDP performance may influence MCX Gold demand indirectly by signaling the strength of domestic economic activity and consumption.
Trump Tariffs: What Happened and Why It Matters for Gold
In April, Donald Trump imposed broad reciprocal tariffs on multiple trading partners. These actions raised inflation and trade war concerns, which supported a rise in gold prices earlier this year.
However, several of these tariffs were paused shortly after being announced. This week’s court ruling permanently blocks those actions, reducing future inflation risks and removing a key justification for high gold prices.
Should You Buy, Sell, or Hold Gold Now?
✅ Sell – Short-Term Strategy
- If gold falls below ₹95,000 with strong volume, experts recommend a short-term sell strategy with a downside target of ₹94,200.
- Overbought technical indicators support this view, especially with a rising U.S. dollar and fading tariff concerns.
⚠️ Hold – If Already Long
- Those with long-term positions should monitor key supports around ₹94,200–₹94,600.
- A close below these levels could open the door to further correction.
❌ Avoid Fresh Buying for Now
- Uncertainty around the U.S. Fed’s stance and macroeconomic data may lead to more volatility.
- Best to wait for price stabilization or a bounce from key support before initiating new positions.
Conclusion: Gold Price Today Signals Short-Term Weakness, Watch Key Levels
Gold Price Today reflects the market’s re-evaluation of inflation risks following the U.S. court’s rejection of Trump’s tariff policy. Combined with a stronger U.S. dollar and critical economic data on the horizon, traders should brace for more volatility in MCX Gold.
Short-term strategies favor selling on rallies or below ₹95,000, while long-term investors may consider buying only near strong support levels.
