Gold Prices Hit Record High of Rs 96,747 Amid Global Uncertainty

Gold prices witnessed a sharp surge on Monday, rising by Rs 1,493 and crossing the psychological Rs 96,000 mark for the first time in history. The yellow metal’s impressive rally was fueled by strong global demand, amid growing uncertainties in international markets.

On the Multi Commodity Exchange (MCX), June delivery gold contracts continued their upward momentum, climbing by 1.57% to reach an all-time high of Rs 96,747 per 10 grams during the initial trade. Although it slightly pulled back later, it still maintained an impressive increase of Rs 1,346, trading at Rs 96,600 per 10 grams, up by 1.41% with an open interest of 21,540 lots. Similarly, August delivery contracts saw a surge, jumping Rs 1,464 or 1.53% to touch a new peak of Rs 97,360 per 10 grams.

The rally comes after commodity markets were closed on Friday in observance of Good Friday, and analysts suggest that the ongoing trade tensions between the US and China are a key driver of the surge. The prolonged uncertainty surrounding the trade war has led investors to turn to gold as a safe-haven asset. With no resolution in sight between the world’s two largest economies, experts predict that gold’s bullish trend is likely to continue.

In global markets, gold futures also hit a record high of USD 3,400.86 per ounce. According to Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd., the rise in gold prices is supported by a weakening US dollar and heightened demand for safe assets amid concerns over global trade tensions.

Kalantri further highlighted that the US dollar sank to a two-year low following President Donald Trump’s recent attacks on US Federal Reserve Chairman Jerome Powell. This has led to speculation about a potential leadership change at the Federal Reserve, which could impact the central bank’s independence and global financial markets.

Additionally, the European Central Bank (ECB) cut interest rates by 25 basis points, further boosting gold prices. As long as there are no significant breakthroughs in US-China trade talks, gold is expected to remain strong and volatile.

Analysts suggest that any positive development in the trade dispute between the US and China could temper the gains in precious metals, but for now, the momentum remains overwhelmingly bullish.