Today's gold rate: MCX gold price increases by almost 2%; analysts discuss bullion strategy

Despite traders and investors closely monitoring news flows around the US-China trade crisis, gold prices rose more than 2% on Monday, helped by the dollar's weakening and robust spot demand. Around 4:50 PM, MCX Gold June 5 contracts were up 2.14 percent at ₹94,615 per 10 grams.

As investors focused on the US-China trade negotiations and the US Federal Reserve's policy decision on Wednesday, global gold prices also increased by more than 1%.

Due to pressure on the home currency from worries about an impending US recession, the dollar index fell by roughly 0.5 percent. The first quarter of 2025 had a 0.3% annualized contraction in the US GDP. In April, US manufacturing shrank for a second consecutive month. In April, the ISM's manufacturing PMI fell from 49.0 in March to 48.7, a five-month low.

When the dollar declines, gold becomes more affordable in other currencies, increasing demand and stabilizing prices.

The US Federal Reserve's economic forecasts and indications regarding its interest rate trajectory have taken center stage, even as trade talks between the two biggest economies in the world continue to be a major factor in the price of the yellow metal. It is generally anticipated that the Fed would maintain its current rate on Wednesday.