Gold Prices Drop as US Court Blocks Trump’s Tariffs: MCX Outlook and Expert Tips
Gold prices fell sharply in India’s futures market on Thursday. This was due to some important events in the US and changes in the currency market. A key reason was a US court ruling that canceled former President Trump’s tariffs. This made gold less attractive as a safe investment. At the same time, the US dollar became stronger, making gold more expensive for buyers using other currencies.
Gold Prices Fall After US Court Decision
The most active MCX Gold June contract dropped 0.52% to ₹94,779 per 10 grams by 9:05 AM Thursday. This happened after the US Court of International Trade said Trump’s tariffs were not valid. The court ruled that Trump had gone beyond his powers by imposing tariffs on many imports from countries with trade surpluses with the US.
Trump had started these tariffs on April 2, targeting many trading partners. But many tariffs were paused soon after, and the US has been negotiating with countries like China. Tariffs on the European Union have also been delayed until July 9.
Strong US Dollar Adds Pressure on Gold
The US dollar index rose to 100.54. A strong dollar usually lowers gold prices because gold becomes costlier for buyers using other currencies. This made gold weaker in both global and Indian markets.
What Investors Are Watching Next
Investors are waiting for important US economic data, like the first-quarter GDP and the Core PCE Price Index. The PCE data is very important because the Federal Reserve uses it to decide on interest rates.
Minutes from the recent Federal Reserve meeting showed concerns about how trade policies affect inflation and growth. High inflation and a weak job market could make it harder for the Fed to set policies, which may affect gold prices.
In India, markets are watching the Q4FY25 GDP data due Friday. This data will influence how investors feel and could impact gold demand in India.
Expert Trading Tips for MCX Gold
Experts are cautious because of the market’s ups and downs. They expect prices to move sharply due to currency changes, global events, and new data.
Manoj Kumar Jain, Prithvifinmart Commodity Research says gold and silver will be volatile this week. He suggests selling MCX Gold below ₹95,000 with a stop loss at ₹95,550 and a target of ₹94,200.
He notes support for gold at $3,288–3,264 per ounce and resistance at $3,344–3,368. For silver, support is $32.80–32.55 and resistance $33.45–33.70.
In Indian rupees, gold support is ₹94,660–94,200 and resistance ₹95,700–96,100. Silver support is ₹96,650–96,000 and resistance ₹98,000–98,850.
Rahul Kalantri, Mehta Equities VP of Commodities gives a similar view. He suggests watching dollar moves and data releases for short-term trading chances.
- Gold (USD): Support $3,255–3,240, Resistance $3,300–3,322
- Silver (USD): Support $32.85–32.65, Resistance $33.35–33.55
- Gold (INR): Support ₹94,910–94,580, Resistance ₹95,550–95,740
- Silver (INR): Support ₹96,480–95,750, Resistance ₹97,950–98,750
What to Expect Next
Gold prices are facing a tough environment. The US court’s decision reduced gold’s appeal as a safe asset. The strong dollar is also pushing prices down. With important US and Indian economic data coming soon, expect more price swings.
Experts advise a cautious strategy — selling on price rises if gold cannot hold key support levels. Keep an eye on US GDP, inflation data, and India’s GDP report to make smart trading choices.
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