Gold prices maintained their upward momentum on Wednesday, fueled by a combination of rising geopolitical tensions, concerns over the US economy, and the looming threat of tariffs from US President Donald Trump. These factors drove both domestic and international gold prices higher, as investors flocked to the precious metal as a safe-haven asset. The MCX gold contract for June 2025 opened with a significant gap-up at ₹91,229 per 10 grams, hitting an intraday high of ₹91,232, reflecting strong market reactions to Trump’s tariff threats.

In global markets, spot gold hovered around $3,125 per ounce, while COMEX gold futures stood at $3,155 per troy ounce. As Trump’s tariff announcements draw closer, gold prices found fresh demand near $3,110, with investors seeking a safe store of value amid the uncertainty surrounding global trade policies. The anticipation of tariffs led to renewed interest in gold, reinforcing its status as a hedge against geopolitical and economic risks.

The daily Relative Strength Index (RSI) has now entered the overbought zone, signaling that the current gold rally may need to be approached with caution. While the price surge reflects the broader market uncertainty, the overbought condition suggests the potential for a price correction in the near term. Despite this, gold’s appeal remains strong, particularly with the softening signs of the US labor market and growing expectations of interest rate cuts by the Federal Reserve, which could further support gold’s upward momentum.

However, any short-term reactions to US economic data or Fed actions may be short-lived, with the market’s primary focus on Trump’s upcoming “Liberation Day” and the announcement of new tariffs. The outcome of these geopolitical developments will play a crucial role in determining gold’s trajectory in the coming weeks. As tensions continue to build, gold remains a key asset in navigating the uncertainty surrounding global financial markets, with traders and investors closely monitoring every new development.