Gold price on MCX, which stood at Rs 77,719 per 10 gm on December 31 last year, rose to a high of Rs 97,480 in the current session. At 11:09 am, gold price stood at Rs 97515 per 10 gm, up Rs 125 from the previous close of Rs 97,390. During the recent rally, price of the yellow metal hit a record high of Rs 1,01,078 on June 16. Meanwhile, the dollar index slipped 10.8% in the first half of 2025, bringing a relief for the prices of yellow metal. With the dollar falling against the euro and the yen, gold prices have risen. Since, the price of gold is traded in dollars, a fall in the dollar usually leads to gold getting cheaper for buyers with other currencies potentially raising demand and price of the precious metal. Additionally, gold is often considered as a hedge against inflation, with investors buying the yellow metal when the greenback falters. Additional demand keeps the price of gold higher. Recently, the Federal Reserve announced that there would be two more interest rate cuts this year. This indicates that the US economy needs the apex bank's support for growth. In times of low growth, gold is considered as a safe haven for investment. Meanwhile, BMI, a Fitch Solutions firm sees no quick collapse in gold price yet after the recent record run. "While gold remains on a pedestal due to trade uncertainties, heightened geopolitical tensions (especially in the Middle East), a weaker US dollar, and increasing central bank purchases, we note that the rally seems to have run its course with downside pressures building," said BMI. The firm sees annual average gold price for 2025 at USD 3,100/oz, and is neutral towards the asset class for the coming months. In the longer term beyond 2025, BMI expects gold prices to ease. The main driver of easing gold prices in the longer term will be greater risk-on sentiment as the global economy recovers in the later part of the decade. "Despite our outlook for gold prices to weaken, we do not see a return to pre-Covid levels. Gold prices will average $2,720/oz during 2025-2029, compared with $1,393/oz in 2019," said BMI. Rahul Kalantri, VP Commodities, Mehta Equities said, "Gold extended gains after U.S. ADP non-farm payroll data showed a surprise contraction of 33,000 jobs, against the expected increase of 99,000. The dollar index fell to a fresh 3.5-year low, while U.S. 10-year bond yields dipped to a 2-month low-both supporting precious metal prices. Additionally, concerns over the approaching July 9 U.S. trade tariff deadline lent further support. If a trade deal is not finalized in time, higher tariffs could trigger volatility in global financial markets. Meanwhile, the upcoming U.S. jobs report remains a key event that may offer further direction to bullion prices. Gold has support at $3320-3295 while resistance at $3360-3375. In INR, gold has support at Rs 96,990- Rs 96,680 while resistance at Rs 97,810- Rs 98,280." Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures said, "The rally in gold comes as a result of prolonged uncertainty of the global economy, increasing inflation, and currency fluctuations continuously happening throughout the world stage, prompting investors to find solace in gold as a traditional safe-haven asset. Due to equity markets being volatile and global cues being mixed globally gold has retained its inherent appeal, particularly with most country buyers and investors alike. For Indian consumers, especially those looking to buy gold for weddings, festivals, purchases of gold, or long-term saving it is prudent to keep vigilant regarding price changes on a day-to-day basis and utilize moderate purchase buying while transitioning between price corrections to further benefit the price averaging benefit."