Title - Gold Prices Increase as US Fed Warns of Economic Uncertainty — All You Need to Know

Gold prices reported a surge in the domestic futures market on Thursday morning. This development comes after US Federal Reserve Chair Jerome Powell warned of elevated economic uncertainty and inflationary risk in the US amid President Donald Trump’s tariff policies. However, positivity surrounding potential trade deal between the US and China, steered the momentum in the yellow metal. MCX Gold June 5 was trading 0.11% higher at ₹97,200 per 10 grams around 9:15 AM.

The US Federal Reserve's FOMC (Federal Open Market Committee) kept the interest rates unchanged on Wednesday, May 7, factoring in economic uncertainty and inflationary pressure.

Though the US economy looks in perfect shape, Powell highlighted that risks pertaining to the economy still prevail.

The US and Chinese officials are set to hold discussions in Switzerland later this week. Reportedly, US Treasury Secretary Bessent and Chief Trade Negotiator Jamieson Greer are set to meet China’s He Lifeng this week in Switzerland.

What did experts say?

Gold has support at $3,370-3,345 while resistance is kept at $3,422-3,440. Silver has support at $32.50-32.20 while resistance is at $33.05-33.25 said Rahul Kalantri, VP of commodities at Mehta Equities.

As per Motilal Oswal Wealth Management, MCX Gold is expected to trade sideways with support at ₹96,800 and ₹96,500, while resistance is placed between ₹97,500 - ₹97,750.