Gold Rate Reclaims ₹94,000 on MCX: Should You Buy Amid Global Trade Optimism?

Gold prices rebound after a sharp fall, but analysts advise caution as global risk sentiment improves post US-China tariff truce and India-Pakistan ceasefire.

Mumbai | May 13, 2025:
Gold prices witnessed a dramatic rebound on Tuesday, with MCX gold futures surging 1.22% to ₹94,031 per 10 grams, recovering from an earlier drop to ₹92,901. The precious metal had slumped by nearly 4% following the US-China trade deal and broader easing of geopolitical tensions, prompting questions about whether this is the right time to buy gold.

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🌍 Global Trade Truce Cools Gold Rally

Investor appetite for gold waned after the United States and China announced a 90-day tariff rollback, easing concerns over global economic instability. The US slashed duties on Chinese imports from 145% to 30%, while China responded by lowering its tariffs on American goods from 125% to 10%.

Also Read: Wall Street Soars as US, China Move Toward Trade Truce; Dow Jumps 2.8%

“The de-escalation of trade tensions led to a sharp rally in the dollar index, weakening gold’s appeal as a safe haven,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

📉 From Rally to Retreat: What Triggered the Fall?

Gold plunged ₹4,000 to ₹92,500 on MCX post-truce
Ceasefires between India-Pakistan and signs of de-escalation in Russia-Ukraine conflict added to risk-on sentiment
Profit booking after a long rally on geopolitical fears further pressured prices

Also Read: Trump Revives ‘Most Favoured Nation’ Drug Pricing Policy To Slash Costs By Up To 80%

📈 What’s Next for Gold?

Resistance zone: ₹94,000–₹95,000
Support level: ₹90,000
Further downside is possible if risk appetite continues to strengthen, analysts say.

“With safe-haven demand weakening, gold could face further corrections if global sentiment remains positive,” Trivedi warned.

🛒 Is It the Right Time to Buy?

Despite recent fluctuations, gold remains FY25’s best-performing asset, delivering:

41% return in USD terms
33% return in INR terms

According to NSE Market Pulse, global gold demand hit a 15-year high of 4,974 tonnes, driven by a 25% jump in investment demand.

🧭 Expert Advice

Investors are advised to:

Wait for consolidation near ₹90,000–₹92,000 before fresh entries
Use current levels for partial profit booking, especially if bought during March-April highs
Watch global triggers including US inflation data, crude oil prices, and ongoing geopolitical developments

Tags:
Gold price today, MCX gold rate, gold investment advice, US-China trade deal, India-Pakistan ceasefire, commodity market news, gold resistance support levels, FY25 asset performance, global gold demand, safe haven asset

Business Desk