Gold prices on the Multi Commodity Exchange (MCX) surged to a record high on Friday, following a rally in international bullion prices. The escalating global trade war and growing concerns over economic stability have led to a surge in safe-haven buying, driving gold to new peaks.
Key Highlights
MCX Gold: Opened at ₹92,463 per 10 grams, surged to a record high of ₹93,736, and was trading at ₹93,254 at 12:10 PM, up by ₹1,221.00 (1.33%).
MCX Silver: Opened at ₹92,000 per kg, up ₹793 (0.87%) at ₹92,388 per kg.
International Gold: Gold prices reached an all-time high of $3,219.73 per ounce, with spot gold at $3,216.48, rising 1.3%. US gold futures gained 1.9% to $3,236.
Market Drivers
Escalating Global Trade War: Trade tensions between the US and China, especially after President Trump’s tariff hikes and China’s retaliatory actions, have intensified market uncertainty, pushing investors toward gold.
Weaker US Dollar: The ongoing depreciation of the USD has made gold more affordable for overseas buyers, increasing demand for the yellow metal.
Expert Opinion
Ajay Kedia, Director of Kedia Advisory, suggested that gold prices have broken out on the upside amid the tariff war concerns and strong short-coverings. The gold-silver ratio has risen above 102, indicating a preference for gold among traders.
He forecasts that international gold prices may target $3,320, with MCX gold prices potentially reaching ₹95,000 per 10 grams.
Price Support and Resistance Levels
Support: ₹90,000 per 10 grams on MCX.
Resistance: ₹95,000 per 10 grams on MCX.
Should You Buy?
Yes, but with Caution: Given the ongoing volatility in the global market, gold remains a safe-haven asset, especially with escalating geopolitical risks. However, be cautious due to market fluctuations, and consider entering if prices dip to around ₹90,000 for better value.
For Long-Term Investors: Gold may continue to rise in the short term as global uncertainties persist, but careful monitoring of trade developments is crucial.
Related topics：
- What is the Value of 18K Gold?
- Why Does Gold Price Increase During War?
- What is the Best Price Being Paid for Gold Sovereigns?
