Gold prices saw a rise on the Multi Commodity Exchange (MCX) on Monday, driven by safe-haven demand as global equity markets crashed. Gold traded up by ₹301, or 0.34%, at ₹88,376 per 10 grams, while silver surged by ₹1,487, or 1.71%, reaching ₹88,698 per kg.
In international markets, however, gold prices hit a three-week low due to a broader market sell-off sparked by US President Donald Trump’s tariff measures. Spot gold fell 1.9% to $2,981.09 an ounce, its lowest since March 13, after hitting a record high of $3,167.57 on April 3. US gold futures also dropped 1.3% to $2,997.40. Spot silver saw a 2.8% decline, reaching $28.74 an ounce, marking its lowest point in nearly seven months. The dollar index remained steady at 102.81 after a 1% drop last week.
Why Are Gold Prices Falling?
Last week’s sharp declines in gold and silver prices were primarily due to heightened volatility following the US’s imposition of reciprocal trade tariffs on key trading partners. In retaliation, China imposed a 34% tariff on US imports, escalating global trade tensions. Further contributing to the bearish sentiment were dovish comments from US Federal Reserve Chairman Jerome Powell, along with a weaker-than-expected US non-farm payroll report for March.
Gold Price Outlook
Rahul Kalantri, VP Commodities at Mehta Equities Ltd., noted that volatility in financial markets is expected to persist. He provided the following outlook:
Gold has support at $3,000 – $2,978 and resistance at $3,055 – $3,075.
Silver has support at $29.48 – $29.20 and resistance at $30.10 – $30.46.
In INR:
Gold has support at ₹87,760 – ₹87,350 and resistance at ₹88,610 – ₹89,190.
Silver has support at ₹86,600 – ₹85,650 and resistance at ₹89,500 – ₹90,950.
Stock Market Crashes
The Indian stock market mirrored global trends, experiencing a sharp decline as recession fears mounted due to the global trade war. The Sensex fell by as much as 4,000 points, while the Nifty 50 dropped below 21,800 in early trade.
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