Gold prices climbed sharply on Tuesday morning, with domestic futures surging over 1% amid strong global cues and investor caution ahead of key macroeconomic events in the United States. On the Multi Commodity Exchange (MCX), the Gold June 5 contract was trading 1.31% higher at ₹95,885 per 10 grams around 9:15 AM, after briefly touching the ₹96,000 mark earlier in the session.
The rally in domestic prices mirrored gains in the international market, where gold reached a two-week high. According to Reuters, concerns surrounding US President Donald Trump’s tariff policies continued to weigh on market sentiment, driving investors towards safe-haven assets like gold. Global traders are also bracing for the outcome of the US Federal Reserve’s policy meeting, scheduled for Wednesday.
Investors are expected to closely watch Fed Chair Jerome Powell’s commentary for insights into the central bank’s stance on interest rates, growth prospects, and inflation trajectory. Any dovish signals or indication of prolonged economic uncertainty could further support gold prices, which tend to benefit in low-rate environments and during times of geopolitical or economic stress.
The sharp movement in gold also comes amid renewed demand for safe-haven investments, with equity markets exhibiting volatility and concerns resurfacing over global trade tensions. With the dollar’s recent weakness and soft US economic data, gold has regained investor interest as a store of value.
Analysts suggest that if gold sustains above ₹96,000 in the domestic market, further upside may be possible in the near term. Market participants will remain cautious and largely driven by the outcome of the Fed’s decision and Powell’s tone during the post-meeting press conference. Until then, the yellow metal is likely to see heightened interest from both traders and retail investors.
