Gold Hits Record ₹91,423 on MCX as Global Trade War Fears Intensify

Gold prices have reached a new peak, driven by investors seeking safe-haven assets due to concerns about a widening global trade war sparked by US President Donald Trump's tariffs. The yellow metal hit a fresh high of ₹91,423 per 10 grams on the Multi Commodity Exchange (MCX). This increase followed gains in international bullion prices.

Safe-Haven Demand and International Gold Prices

Nervous investors are flocking to safe-haven assets, pushing international gold prices to a record high. Spot gold rose by 0.4% to $3,145.93 an ounce, having earlier reached an all-time high of $3,167.57.US gold futures also formed by 0.1% to $3,170.70. In contrast, spot silver experienced a slip of 1.2% to $33.61 an ounce.

MCX Gold and Silver Price Movements

On the MCX, gold prices opened higher at ₹91,230 per 10 grams compared to the previous close of ₹90,728 and subsequently reached a new high of ₹91,423. In the early trade, MCX gold was trading higher by ₹557, or 0.61%, at ₹91,285 per 10 grams. Meanwhile, MCX silver prices opened lower at ₹99,658 per kg, down from the previous close of ₹99,753, and continued to fall, trading at ₹98,192 per kg, a decrease of ₹1,561 or 1.56%.

Trump's Tariff Announcements

Donald Trump announced that he would impose a 10% baseline tariff on all imports to the US and higher duties on several countries, including major trading partners, escalating the global trade war. His administration also confirmed that the 25% global car and truck tariffs will take effect on April 3, and duties on automotive parts imports will be implemented on May 3. This news caused the dollar index and the US 10-year bond yields to fall to 5-1/2 month lows, which supported gold prices.

Analyst's Outlook on Gold and Silver Prices

Rahul Kalantri, VP Commodities at Mehta Equities Ltd., noted that silver was volatile due to the tariff announcements but was unable to sustain gains due to sell-offs in industrial metals and global equity markets. He provided support and resistance levels for gold in the international market at $3,118-$3,095 and $3,172-$3,190, respectively, and for silver at $33.30-$33.10 and $33.80-$34.05, respectively. For MCX, he indicated gold has support at ₹90,480-₹90,250 and resistance at ₹91,080-₹91,390, while silver has support at ₹99,050-₹98,450 and resistance at ₹1,01,000-₹1,01,7406 .He advised investors to consult certified experts before making any investment decisions.

Impact on Indian Stock Market

The Indian stock market experienced a downturn, with the benchmark Nifty 50 index falling below the 23,300 level.

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