Gold Prices Rally Over ₹8,350; Market Eyes US Economic Trends
New Delhi (The Uttam Hindu): Gold prices have been on an upward trend for six consecutive weeks, driven by economic uncertainty and global trade tensions. On the Multi Commodity Exchange (MCX), gold settled at ₹84,900 per 10 grams after hitting a new peak of ₹85,279 per 10 grams. The precious metal has recorded a weekly gain of over ₹2,500 per 10 grams, while in the last six weeks, it has surged by ₹8,356 per 10 grams, marking a 10.90% rise. Internationally, gold has also witnessed a steady rally, reaching $2,886 per ounce in the spot markets. The surge is attributed to multiple factors, including US economic policies, a weakening Indian Rupee, and rising global uncertainties.
Experts believe that concerns surrounding US President Donald Trump’s trade policies have played a major role in boosting gold’s appeal as a safe-haven asset. The announcement of fresh import tariffs on China, along with potential 25% tariffs on Mexico and Canada, has triggered fears of escalating trade tensions. In response, China has retaliated with its own tariff measures, adding further pressure on the global economy. Additionally, geopolitical concerns in the Middle East following Trump’s remarks on the Gaza Strip have further fueled demand for gold. The recent rate cuts by central banks, including the Bank of England, European Central Bank, Bank of Canada, and the Reserve Bank of India, have also contributed to the bullish momentum in gold prices.
Market analysts suggest that gold prices may continue their upward trajectory, though some corrections could be expected. Technical indicators point to a possible pullback, with initial support around ₹83,800 per 10 grams and further support near ₹83,300 if the decline continues. However, the World Gold Council’s latest report indicating record global demand of 4,974.5 metric tons in 2024 suggests strong investor interest in gold. With uncertainty looming over global markets and concerns over US economic data persisting, gold remains a preferred investment for many seeking stability.
