Gold price today: Gold prices fell marginally on Tuesday morning fueled by Donald Trump’s tariff disputes with China and the European Union, ongoing geopolitical uncertainty from the Russia-Ukraine conflict, and market expectations ahead of the upcoming US Federal Reserve interest rate decision.
MCX Gold was trading 0.18 per cent down to ₹96,752 per 10 grams around 9:30 am on June 3.
Meanwhile, gold prices in the international market also saw a marginal fall on Tuesday, retreating from near a four-week high. Spot gold fell 0.3% to $3,369.98 an ounce, as of 0249 GMT, after hitting its highest level since May 8 earlier in the session. U.S. gold futures were steady at $3,390. The metal rose approximately 2.7% in the last trading session, recording its best single-day gain in over three weeks.
Because gold is valued in US dollars, a weaker dollar causes gold to become less expensive in foreign currencies, which boosts its demand abroad.
Currently, gold’s main driver is the economic outlook of the world’s biggest economy. Following Moody’s downgrade of the US credit rating, President Donald Trump’s broad tax and spending plan has sparked worries that it could increase the country’s fiscal deficit.
“Gold and silver began Monday’s session with a gap-up opening and maintained strong upward momentum throughout the day, rising 2.28% and 4.13% respectively. Gold prices hit 3-week highs and silver prices also hit 2-month highs in the international markets. The rally was driven by increased investor demand for safe-haven assets amid escalating geopolitical and economic uncertainties. A 0.7% decline in the US dollar further supported foreign inflows. Investor sentiment turned defensive as President Trump’s announcement to double tariffs on steel and aluminium, rekindling trade war concerns with China. Escalating tensions in the Russia-Ukraine conflict further strengthened the safe-haven demand,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
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.
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