Current gold rate: Following the US Fed's warning of economic instability, prices rise; analysts point to important levels for MCX Gold.

A day after US Federal Reserve Chair Jerome Powell issued a warning about increased economic uncertainty and inflation risk in the US, mostly as a result of President Donald Trump's tariff policies, gold prices increased in the domestic futures market Thursday morning. Gains in the yellow metal were, however, restrained by mounting confidence over a possible trade agreement between the US and its main trading partners, notably China and India. Around 9:15 AM, MCX Gold June 5 contracts were up 0.11 percent at ₹97,200 per 10 grams. In an effort to highlight the dangers of economic uncertainty and inflationary pressures on the US economy, the FOMC (Federal Open Market Committee) of the US Federal Reserve held the major benchmark interest rates steady on Wednesday, May 7.

According to Powell, the US economy is doing well. He did, however, stress that there are still significant risks and uncertainties associated with the economic outlook.

Powell emphasized that the tariff issue has been "much bigger than expected" and that the impact of the policies on the US economy is still "very" unclear because they are still being developed. The dollar index varied following the Fed's policy decision, and US markets closed the day down.

As US and Chinese officials prepare to meet in Switzerland this weekend, hopes of a trade agreement between the US and its main trading partners have accelerated.

China's economic ruler, He Lifeng, is expected to meet with US Treasury Secretary Bessent and Chief Trade Negotiator Jamieson Greer this week in Switzerland, according to reports. In addition, Trump claimed on Tuesday, May 6, that India has committed to lowering its import duties to "nothing."