Gold rate today: Yellow metal crashes ₹4,000 in 3 days on MCX. Opportunity to buy in this correction?
Gold rate today: A day after posting a healthy gain of over 1 per cent, the MCX Gold June 5 contract declined more than 1 per cent in intraday trade on Friday, April 25, as investors booked profits amid easing concerns over the global tariff war. Around 1:55 PM, the June 5 gold contract on MCX was trading 0.96 per cent lower at ₹94,991 per 10 grams, after hitting an intraday low of ₹94,950.
From its all-time high of ₹99,358 per 10 grams on April 22, the contract has now dropped over ₹4,400 in just three days.
International gold prices also dropped more than 1 per cent on Friday amid reports that China was considering relief to some US imports.
Gold prices are witnessing profit booking globally as hopes for a trade truce between the US and China grow stronger.
A Reuters report suggested that “China may exempt some US imports from its 125 per cent tariffs and is asking businesses to identify eligible goods.”
Earlier, US President Donald Trump said that trade talks with China were underway.
The Trump administration is negotiating with its trade partners globally, and expectations are high for favourable trade deals.
Meanwhile, the dollar’s gains also weighed on gold prices. The dollar index rose 0.3 per cent. Since gold is priced in dollars, a stronger US currency makes the yellow metal more expensive for overseas buyers, denting its demand.
Concerns over a major trade war between the US and its trading partners have been a key catalyst for driving up gold prices this year. Dollar’s weakness, central bank buying and robust inflow in Chinese gold ETFs amid heightened stock market volatility have also supported gold prices globally.
Domestic spot gold prices, which hovered around ₹76,000 on December 31 last year, have surged nearly ₹20,000—or about 26 per cent—so far this year.
Is the recent correction an opportunity to buy gold?
While the medium-term outlook for gold remains positive, prices are expected to stay volatile in the short term, reacting to news flows related to Trump’s tariff policies and geopolitical developments.
(This is a developing story. Please check back for updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
