Gold price today: MCX Gold at fresh high; Trump tariff risk boosts yellow metal; should investors buy or book profit?

Gold price today: MCX Gold prices rose to a fresh record high in the morning session on Tuesday, February 11, supported by concerns over US President Donald Trump’s aggressive tariff policies. MCX Gold for April 4 contracts jumped to a record high of ₹86,360 per 10 grams. Around 11:35 AM, the yellow metal was 0.12 per cent up at ₹85,923 per 10 grams on the MCX.

International gold prices topped the key $2,900 level for the first time, driven by safe-haven demand amid heightened concerns over a trade war. Comex Gold jumped to a record high of 2,968.50 level.

Trump imposed a 25 per cent tariff on steel and aluminium imports on Monday, stoking fears of a trade war.

Geopolitical uncertainty and aggressive buying by central banks have boosted gold prices of late.

“Gold prices soared to a record high, as investors flocked to the safe-haven asset after US President Donald Trump imposed new 25 per cent tariffs on steel and aluminium imports, fueling concerns over a potential trade war and inflation,” said Manav Modi, Analyst, Commodity Research, Motilal Oswal Financial Services.

“President Trump’s latest tariffs threats have ignited another gold rush. Gold has hit an eighth record-high level so far this year, driven by Trump’s tariff threats, which have fueled global growth uncertainties, trade war concerns, and inflationary pressure,” Modi added.

Apart from the Trump factor, the rupee’s weakness against the dollar and the subdued stock market have also contributed to the gains in the yellow metal.

What should investors do?

Investors’ focus is now on key macro data this week, including the US Consumer Price Index (CPI) and Producer Price Index (PPI) data.

Experts point out that the weaker-than-expected CPI and PPI data may raise hopes of a US Fed rate cut, weighing on the dollar. This will further boost gold prices.

However, hotter-than-expected inflation prints may elevate dollar and bond yields and weigh on gold prices. Still, concerns over a trade war, central bank buying and buying on dips by retail investors may support gold prices.

Anuj Gupta, the head of commodities and currency products at HDFC Securities, expects gold prices to maintain the uptrend, and MCX Gold may breach the ₹87,000 mark.

He, however, suggests investors should book some profit.

“Investors who bought gold around Diwali 2024 may consider booking partial profit in gold,” said Gupta.

Rahul Kalantri, VP of commodities at Mehta Equities, expects gold prices to touch $3,000 in February. However, he highlighted that the yellow metal is in the overbought zone and may witness high volatility in the coming days.

In India, MCX gold prices may test ₹88,000 in the near term, said Kalantri.

“We advise short-term traders to book profits at these levels while investors should track USD-INR and the dollar index for further cues,” said Kalantri.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $2,914-2,896, while resistance at $2,950-2,974 per troy ounce and silver has support at $32.20-31.88, while resistance is at $32.74-33.00 per troy ounce in today’s session.

MCX Gold has support at ₹85,350-84,800 and resistance at ₹86,200-86,650, while silver has support at ₹94,400-93,750 and resistance at ₹96,000-96,650, said Jain.

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