Gold prices sustained their upward momentum on Wednesday, supported by rising geopolitical tensions, concerns over U.S. President Donald Trump’s tariff threats, and a weakening U.S. dollar. The MCX gold rate for June 2025 expiry opened higher at ₹91,229 per 10 grams and quickly reached an intraday high of ₹91,232 per 10 grams within minutes of the opening bell. In international markets, spot gold was hovering around $3,125 per ounce, while COMEX gold prices were pegged at approximately $3,155 per troy ounce.
Key Factors Driving Gold Prices
Manav Modi, Senior Analyst at Motilal Oswal, identified five primary factors likely to dictate gold prices in the coming days: Donald Trump’s tariff threats, geopolitical tensions, a falling U.S. dollar index, central bank buying, and investor demand, alongside expectations of U.S. Federal Reserve rate cuts. Geopolitical events, particularly the ongoing U.S.-Iran tensions and the Israel-Hamas conflict, despite news of a ceasefire, have been significant contributors to the bullish trend in gold.
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, echoed Modi’s sentiments, emphasizing that the gold rally is driven by robust safe-haven demand amid fears of an escalating global trade war and its economic consequences. Central bank gold buying and strong ETF inflows have also bolstered the precious metal’s value.
Trump’s Tariff Announcement and Market Impact
The focus of market participants this week is on President Trump’s scheduled implementation of reciprocal tariffs on April 2, a development that could further drive gold prices higher. Gupta noted that risk premiums are likely to build in the gold market as the tariff announcement approaches, keeping prices supported.
Important Levels for MCX Gold
Gupta also highlighted important technical levels for MCX gold, stating that the metal has strong support at ₹90,200 per 10 grams and faces resistance at ₹92,625. He recommended buying MCX gold in the range of ₹90,900 to ₹91,000 per 10 grams for a short-term target of ₹92,625, with a stop loss at ₹90,180 for fresh positions.
As geopolitical uncertainties and tariff threats continue to influence global markets, gold’s status as a safe-haven asset remains prominent, driving sustained interest from investors and central banks alike.
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