Gold prices edged lower on the Multi Commodity Exchange (MCX) Friday morning, tracking weak global signals and tepid demand in the domestic spot market.
At around 9:10 AM, the MCX June 5 gold contract was trading 0.24% down at ₹95,940 per 10 grams.
The dip followed a global decline in gold prices, triggered by easing trade tensions after U.S. President Donald Trump announced a new trade deal with the United Kingdom. As expectations grow for similar agreements with other major economies including China, India, and Japan, investor appetite for gold—a traditional safe haven—appears to be waning.
“Gold prices have declined to approximately $3,300 per troy ounce, weighed down by a stronger U.S. dollar and fading investor interest in the non-yielding asset due to improving global trade sentiment,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Trivedi added that the newly announced U.S.-UK trade agreement contributed to the metal’s extended losses. President Trump described the deal as a “breakthrough” aimed at boosting American exports, though a 10% tariff on select goods remains in place. He also suggested that the U.S. may consider easing tariffs on China.
Meanwhile, Beijing has expressed optimism about resolving its trade dispute with Washington. According to Reuters, Chinese Vice Foreign Minister Hua Chunying said Friday that China is confident in its ability to handle trade tensions with the U.S., ahead of a scheduled meeting between U.S. and Chinese officials in Switzerland.
The U.S. dollar’s strength has added further pressure on gold prices. Reuters noted that the greenback was poised for a weekly gain against most major currencies, buoyed by positive sentiment from the U.S.-UK trade announcement and renewed hopes for progress in upcoming U.S.-China negotiations.
Adding to gold’s headwinds, market sentiment has shifted following the U.S. Federal Reserve’s recent stance on interest rates. On May 7, the Fed indicated it is in no rush to cut rates, citing increased inflation risks—a position that further supports the dollar and diminishes the appeal of gold.
