Gold prices on the Multi Commodity Exchange (MCX) hit a fresh record on Thursday, rising by half a percent to ₹91,423 per 10 grams. This surge follows the announcement of aggressive tariffs by US President Donald Trump, which has prompted heightened demand for safe-haven assets like gold amidst fears of a widening global trade war.
MCX gold opened higher at ₹91,230 per 10 grams, compared to the previous close of ₹90,728. The price quickly spiked, reaching ₹91,423 shortly after the market opened. At 9:10 AM, gold was trading at ₹91,285, marking an increase of ₹557 (0.61%) per 10 grams. In contrast, MCX silver prices saw a decline, dropping by ₹1,561 (1.56%) to ₹98,192 per kilogram.
International gold prices also hit new highs, tracking the upward momentum in the Indian market. Spot gold rose by 0.4% to $3,145.93 per ounce, earlier reaching an all-time peak of $3,167.57. US gold futures gained 0.1%, reaching $3,170.70. Meanwhile, silver prices fell by 1.2%, trading at $33.61 an ounce.
Trump’s Tariffs and Market Impact
On Wednesday, President Trump revealed plans to impose a 10% baseline tariff on all imports to the US, alongside higher duties on numerous major trading partners. This move has escalated concerns of a global trade war, spurring investors to flock to gold as a protective asset. Trump also confirmed that his 25% tariffs on cars and trucks would take effect on April 3, with automotive parts tariffs scheduled for May 3, further deepening market uncertainties.
The announcement has pressured the US dollar and Treasury yields, both of which dipped to five-and-a-half-month lows, providing additional support for gold prices.
Gold Price Outlook
As gold continues to set new records, analysts predict that the precious metal’s momentum could persist, driven by ongoing global economic tensions. Rahul Kalantri, VP of Commodities at Mehta Equities Ltd., stated that gold has support at $3,118-$3,095, with resistance at $3,172-$3,190. For silver, support is seen at $33.30-$33.10, while resistance stands at $33.80-$34.05.
In the Indian market, Kalantri noted that MCX gold has support at ₹90,480-₹90,250, with resistance between ₹91,080 and ₹91,390. Silver, on the other hand, faces support at ₹99,050-₹98,450, with resistance levels at ₹1,01,000-₹1,01,740.
Stock Market Reaction
The Indian stock market reacted negatively to the global trade tensions, with the benchmark Nifty 50 index falling below the 23,300 level. This downward movement in equities further contributed to the increasing appeal of gold as a hedge against market volatility.
As global trade uncertainties continue to escalate, gold’s role as a safe haven is likely to remain strong, with investors closely watching developments around tariffs and geopolitical risks.
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