Gold Price Outlook: China Tariffs & MCX Rate Impact

Gold prices in Indian markets (MCX) could see a pullback, with experts predicting a potential decline to ₹87,000 per kg—or even ₹84,000—in the coming days. The drop follows China’s new tariff announcements, sparking a sell-off in global and domestic gold markets.

On Friday, MCX gold fell 2.17% to ₹88,099 per 10 grams, while global spot gold dropped 2.4% to $3,041.11 per ounce as investors shifted away from safe-haven assets.

Why Are Gold Prices Falling? Key Factors
China Tariff Impact – The latest trade policies triggered profit booking, as markets had already priced in tariff risks.

Reduced Safe-Haven Demand – Easing Russia-Ukraine & Middle East tensions lowered gold’s appeal.

Strong US Jobs Data – March’s robust non-farm payrolls reduced expectations of aggressive Fed rate cuts, pressuring gold further.

Expert Insights: How Low Can Gold Go?
1. Profit Booking & Trade War Effects
Jateen Trivedi (LKP Securities VP Research) explains:

“Gold saw profit booking post-China tariff news, as markets had already adjusted for trade war risks.”

“With geopolitical tensions cooling, demand for gold as a safe-haven asset may soften.”

Technical levels to watch:

Resistance: $3,120-$3,130 (Comex)

Support: $3,050-$3,055 – A break below could trigger further selling.

2. Domestic Gold Price Forecast
Sugandha Sachdeva (SS WealthStreet Founder) adds:

“Gold’s rally is facing headwinds due to global trade disruptions.”

“Trump’s exclusion of gold from tariffs eased supply fears, reducing price support.”

MCX gold could test:

First support: ₹87,000 per kg

Next critical level: ₹84,000 if selling pressure continues.