Gold prices climbed nearly 1% in early trade on Monday on the domestic futures market, supported by a softer U.S. dollar and renewed concerns over the potential return of Trump-era tariffs. At around 9:10 AM, the June 5 MCX Gold contract was trading 0.95% higher at ₹93,317 per 10 grams.
Internationally, gold also gained ground as comments from U.S. Treasury Secretary Scott Bessent reignited investor demand for safe-haven assets. Bessent, in a Sunday television interview, warned that President Donald Trump could reimpose tariffs on trade partners that fail to negotiate in good faith. These remarks, reported by Reuters, added to financial market volatility and strengthened gold’s appeal as a hedge.
The U.S. dollar index slipped nearly 0.3%, further supporting bullion prices. A weaker dollar typically boosts gold demand by making it more affordable for holders of other currencies.
Adding to the momentum, Moody’s Ratings downgraded the U.S. sovereign credit rating from Aaa to Aa1 on Friday, citing escalating national debt and ongoing political gridlock. Analysts view the downgrade as a positive signal for safe-haven assets such as gold.
“Moody’s decision to lower the U.S. credit profile could temporarily dampen sentiment in riskier assets, giving safe-haven assets like gold a boost,” said Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA) and Executive Chairperson at Aspect Global Ventures. “Domestic demand ahead of the wedding season in India is also likely to support prices and limit downside risk.”
Analysts Outline Technical Outlook
Market experts anticipate continued volatility in precious metals amid global uncertainty and fluctuations in the dollar index.
Manoj Kumar Jain of Prithvifinmart Commodity Research advised a cautious approach, recommending short positions on gold at higher levels. “We suggest selling gold around ₹93,200 with a stop loss at ₹94,200 and a target of ₹91,100,” he said.
According to Jain, international gold faces support at $3,164–$3,140 and resistance at $3,207–$3,234 per troy ounce. Silver is supported at $32.00–$31.80 and faces resistance at $32.60–$32.84.
On the MCX, gold has support at ₹91,950–₹91,400 and resistance at ₹92,850–₹93,360. For silver, support lies at ₹94,650–₹93,800, with resistance at ₹96,000–₹96,650.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, also noted similar levels. He sees gold support at $3,195–$3,175 and resistance at $3,245–$3,260 per troy ounce. Silver is supported at $32.10–$31.80 and faces resistance at $32.65–$32.85.
In Indian rupee terms, Kalantri pegged gold support at ₹91,850–₹91,480 and resistance at ₹92,850–₹93,490. Silver’s support stands at ₹94,480–₹94,850, with resistance between ₹95,950 and ₹96,650.
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