New Delhi— Gold prices in India soared to a record ₹96,805 ($1,160) per 10 grams on Monday, driven by escalating global trade tensions and a weakening U.S. dollar, which fueled safe-haven demand for the precious metal.
At 1:30 p.m., the MCX Gold June 5 contract was trading 1.65% higher at ₹96,830 per 10 grams. Spot gold also surged, with 999-purity gold priced at ₹9,659 per gram and 22-carat gold at ₹9,427, according to the India Bullion and Jewellers Association (IBJA). Prices for 20- and 18-carat gold were ₹8,596 and ₹7,824 per gram, respectively.
The rally mirrors international trends, where gold touched a new all-time high of $3,384 per ounce. Investors are flocking to gold as concerns over a prolonged trade war between the U.S. and China intensify.
A key driver of the rally is the declining U.S. dollar, which recently hit a three-year low. Because gold is priced in dollars, a weaker dollar makes it more affordable for investors using other currencies, boosting global demand.
In the previous session, MCX gold dipped 0.44% to ₹95,239 per 10 grams on profit booking. However, fresh buying resumed as fears of extended trade disruptions and rising U.S. bond yields reignited bullish sentiment.
“Gold has maintained strong upward momentum, briefly crossing $3,400 per ounce,” said Pranav Mer, analyst at JM Financial Services. “ETF inflows and India’s upcoming festive demand are also supporting prices.”
Mer noted that traders are closely watching ongoing trade negotiations between the U.S., Japan, the Eurozone, and China for further direction.
Technically, gold has key support levels at ₹95,550 and ₹94,200, with resistance expected at ₹97,580 and ₹98,200. If the current momentum holds, analysts believe gold could soon breach the ₹1 lakh ($1,200) mark per 10 grams. (Source: IANS)
