Gold's bling run halts on profit booking. Should you buy the dip or wait for more corrections?

Gold prices softened somewhat on Thursday amid profit taking by investors following a stellar rally that has seen the yellow metal hit new record highs on a daily basis. The safe haven sentiment for bullion remains upbeat amid dollar weakness, looming uncertainty over Trump tariffs and the likelihood of slowdown in two warring economies – China and the US.

The gold price on MCX has shot-up by over 24% or Rs 18,600 per 10 gram in 2025, so far.

Around 2 pm today, June MCX gold contracts were trading at Rs 95,185 per 10, down by Rs 476 or 0.50% over the Wednesday closing price. They had hit a lifetime high of Rs 95,935 in the previous session.


Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services said that gold prices extending their record run to breach $3,300 per troy ounce mark was on account of a weaker dollar and escalating US-China trade tensions that pushed investors towards the safe-haven asset.

Gold was trading around $3,337 on the Comex around this time, falling by $8.80 or 0.26% over last closing as the dollar index (DXY) made minor gains.

It was hovering near the 99.52 mark against a basket of six top currencies, gaining by 0.14 points or 0.14%. In the previous five sessions, it has slipped by 1.3% while falling 4.2% on a monthly basis.

Silver on the other hand saw heightened selling pressure as it fell by Rs 1,316 or 1.4% to trade at Rs 94,934 per kg. On the COMEX, silver was down by $0.515 per troy ounce or 1.56% to $32.46.

Should you buy gold/silver?

Anuj Gupta, Head Commodity & Currency at HDFC Securities has a buy view on gold. This is what he recommends:

Buy June gold futures at Rs 94,950 with a stop loss of Rs 94,600 and target of Rs 95,520.

Buy Silver May futures at Rs 94,800 with a stop loss of Rs 94,080 and target price of Rs 95,980.

Modi said that bullion remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about growth slowdown. Moreover, Federal Reserve's Chair Gerome Powell's speech on Wednesday hinting at slowing of the US economy and consumer spending growing modestly, could act as a positive trigger, he added.

Also Read: Gold rush 2025: Yellow metal prices soar by Rs 18,000/10 gram this year. Check 4 reasons fueling this rally & outlook

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)