Gold Prices Hit Record High in India Amid Global Trade Tensions
Gold prices in India have touched a new record high of Rs 96,805 per 10 grams. This rise is driven by fears over a global trade war. Additionally, there is weakness in the US dollar. The Multi Commodity Exchange (MCX) June 5 contract was trading 1.65% higher at Rs 96,830 per 10 grams around 1:30 pm.
Spot Gold Prices Surge
Spot gold prices in India have also surged. Fine gold (999 purity) is priced at Rs 9,659 per gram. Meanwhile, 22-carat gold stands at Rs 9,427 per gram. The rates for 20-carat and 18-carat gold are Rs 8,596 and Rs 7,824 per gram, respectively.
Global Trends Mirror Domestic Prices
The sharp rally in domestic prices reflects international trends. Spot gold has hit a new all-time high of $3,384 per ounce. Investors worldwide are seeking safe-haven assets due to growing tensions between the US and China.
Weakening US Dollar Boosts Demand
A weaker US dollar has made gold more attractive for investors holding other currencies, boosting demand. Pranav Mer of JM Financial Services Limited notes that uncertainty around trade tariffs is keeping bullion prices strong. A weaker US dollar also contributes to this strength, along with rising US bond yields.
Expert Forecast
Mer predicts continued upward momentum, citing buying interest from exchange-traded funds (ETFs) and upcoming festive demand in India. Traders are eyeing ongoing trade talks between the US and its major partners for market clarity.
Technical Outlook
Gold prices now hold support at Rs 95,550 and Rs 94,200. Resistance levels are at Rs 97,580 and Rs 98,200. With global economic uncertainty, gold prices may continue to rise, potentially touching the Rs 1 lakh mark soon
