Gold prices saw a significant rise on April 9, as investors flocked to safe-haven assets in response to growing fears of a trade war between the U.S. and its allies. This global economic uncertainty has driven investors to seek the stability of precious metals, especially gold.
MCX Gold Prices
The MCX Gold June 5 contracts rose by 0.70%, trading at ₹87,533 per 10 grams at around 9:10 AM on Tuesday.
This rebound followed a previous loss of 1.30%, and the positive momentum was supported by fears over a prolonged trade conflict.
Global Gold Market
International Gold prices also saw a jump, with Comex Gold gaining over 1% during the session, driven by the same trade war concerns.
Key Drivers Behind Gold’s Rise
Trade War Fears
As the U.S. administration, led by President Donald Trump, continues to enforce aggressive tariff policies, the likelihood of a full-scale trade war has escalated. This scenario is fueling uncertainty in the global economy, leading investors to hedge against potential market instability with gold.
Expectation of U.S. Rate Cuts
Investors are also anticipating a quicker rate cut from the U.S. Federal Reserve, prompted by concerns that the trade war could push the U.S. economy into a recession. Rate cuts typically increase the attractiveness of gold as a non-yielding asset.
Focus on RBI’s Monetary Policy
The Reserve Bank of India’s (RBI) upcoming Monetary Policy Committee (MPC) meeting on April 9 is in focus. Many experts predict a 25 basis points rate cut, which would likely support gold prices in the domestic market as lower interest rates typically make gold more appealing.
Key Price Levels for Gold and Silver
Gold
Support Levels
$2,940 – $2,922 per ounce (international)
₹86,440 – ₹86,000 per 10 grams (MCX)
Resistance Levels
$3,000 – $3,034 per ounce (international)
₹87,500 – ₹88,000 per 10 grams (MCX)
Silver
Support Levels
$29.20 – $28.80 per ounce (international)
₹87,350 – ₹86,500 per kilogram (MCX)
Resistance Levels
$30.00 – $30.45 per ounce (international)
₹89,400 – ₹90,650 per kilogram (MCX)
Trading Strategies
Silver
Buy above ₹88,500 with a stop loss at ₹87,600 for a target of ₹90,500 (as suggested by Manoj Kumar Jain of Prithvifinmart Commodity Research).
Gold
Traders should keep an eye on the ₹86,440-86,000 support levels, with potential resistance at ₹87,500-88,000. A breakout above these levels could push prices higher.
Market Outlook
The growing tensions from the U.S.-China trade war, along with speculation about U.S. interest rate cuts, are expected to continue supporting gold prices in the near term. With global economic uncertainty and the RBI MPC meeting in focus, gold remains a strong contender for investors seeking stability. However, investors should keep a close watch on key technical levels for signs of market movement.
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