Gold prices rose on Thursday as investors reacted to mounting concerns over the impact of US President Donald Trump’s reciprocal tariffs, which are set to take effect on April 2. The domestic futures market saw an upward trend, with MCX Gold April 4 contracts climbing 0.35% to reach ₹87,949 per 10 grams at around 9:20 AM.
The surge in gold prices comes as Donald Trump announced plans to impose a 25% tariff on auto imports in an effort to boost domestic manufacturing jobs. This move has raised fears of a deepening trade war and its potential consequences on global economic stability. Investors are wary that the wide-ranging tariffs could trigger inflation and affect economic growth, further driving demand for gold as a safe-haven asset. So far in 2025, domestic spot gold prices have increased by 15%, reflecting sustained investor interest amid economic uncertainties.
Market analysts suggest that expectations of US Federal Reserve interest rate cuts this year will keep gold prices elevated, with intermittent profit bookings occurring along the way. Goldman Sachs recently revised its gold price forecast for the end of 2025, raising its projection from $3,100 to $3,300 per ounce. This revision is based on stronger-than-expected ETF inflows and continued demand from central banks, reinforcing the bullish outlook for gold.
While some market participants speculate that Donald Trump’s tariffs may ultimately be less severe, uncertainty persists regarding their long-term impact. The upcoming release of the US personal consumption expenditures (PCE) data, a key inflation gauge for the Federal Reserve, is expected to influence expectations regarding interest rate decisions and could further affect gold prices.
Key Support and Resistance Levels for MCX Gold and Silver
Market experts have outlined key technical levels for gold and silver. According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $3,034-$3,022 per troy ounce and resistance at $3,068-$3,080. Silver, on the other hand, has support at $33.80-$33.55 and resistance at $34.50-$34.80 per troy ounce.
In the domestic market, MCX Gold is expected to find support at ₹87,400-₹87,180 and face resistance at ₹87,850-₹88,100. Silver has support at ₹98,800-₹98,220 and resistance at ₹1,00,200-₹1,01,000. Jain suggests buying silver around ₹98,800 with a stop loss at ₹98,220 for a target of ₹1,00,200.
Similarly, Rahul Kalantri, VP of commodities at Mehta Equities, noted that gold has support at $3,000-$2,982 and resistance at $3,044-$3,060. Silver has support at $33.44-$33.25 and resistance at $33.86-$34.10. In INR terms, gold is expected to find support at ₹87,470-₹87,280, with resistance at ₹87,860-₹87,990. Silver’s support level is between ₹98,550-₹97,850, while its resistance is at ₹1,00,320-₹1,00,950.
As market conditions evolve, investors will continue monitoring economic indicators, trade developments, and Federal Reserve policy decisions to navigate the changing gold price landscape.
