Gold Rate Today: Prices Remain Subdued After US-China Tariff Deal

Market Performance

The gold rate today showed minimal movement in the domestic futures market amid global geopolitical developments. On the Multi Commodity Exchange (MCX), Gold June 5 contracts were trading 0.06% higher at ₹92,955 per 10 grams, following a sharp 4% drop that pushed prices to ₹92,901 earlier.

In the international market, gold prices touched a one-week low on Monday and remained near that level into Tuesday. The cooling demand for the precious metal follows easing global tensions.

Main News

The US-China trade agreement, finalised after two days of negotiations in Geneva, significantly reduced tariffs between the two major economies, dampening demand for safe-haven assets like gold.

Key Highlights of the Trade Deal:

• US tariffs on Chinese imports reduced from 145% to 30%
• China cut tariffs on US imports from 125% to 10%
• These reductions are valid for the next 90 days

Following closely after the US-UK deal, this agreement substantially decreased fears of a global trade war. As a result, investor appetite shifted towards equities, leading to weakened interest in gold.

Adding to this sentiment, tensions between India and Pakistan have eased, further affecting gold's appeal as a safe-haven asset.

Company Details

Though no company-specific data was provided in the reference article, broader market indicators such as the rise in the US dollar index and bond yields have also contributed to gold's subdued performance.

Summary of the Article

Today's gold rate reflects a global shift in investor sentiment following major geopolitical resolutions, especially the US-China tariff reduction deal. With MCX gold trading slightly up at ₹92,955 per 10 grams, market participants remain cautious amid fading global uncertainties.

Investors are closely watching for the upcoming publication of the US Consumer Price Index figures, which are expected to play a key role in shaping the Federal Reserve's future interest rate decisions. Indian CPI figures, also expected soon, may affect local pricing trends.

While gold remains under pressure due to the diminishing safe-haven appeal, volatility is expected to continue as the global economic landscape evolves.