New Delhi: Gold prices on Thursday reached a new all-time high amid market uncertainties.
On the Multi Commodity Exchange (MCX), 24-carat gold April futures rose by 0.21 per cent, touching Rs 86,875 per 10 grams.
The surge in gold prices is mainly driven by global instability. Uncertainty surrounding US President Donald Trump’s tariff policies has led investors to turn to gold as a safe-haven asset.
As a result, international gold prices have climbed to $2,945 per ounce on March 13.
According to the Indian Bullion Jewellers Association (IBJA), the spot price of 24-carat gold in India was Rs 86,670 per 10 grams, while 22-carat gold stood at Rs 84,590 per 10 grams.
The prices for 20-carat, 18-carat, and 14-carat gold were Rs 77,140, Rs 70,200, and Rs 55,900 per 10 grams, respectively.
Experts believe that ongoing trade tensions and tariff uncertainties are pushing investors toward gold.
Additionally, a drop in inflation in the US is supporting higher gold prices. Lower inflation increases the likelihood of interest rate cuts, which further strengthens the demand for gold.
Recent data from the US showed inflation at 2.8 per cent, lower than the expected 3 per cent. Analysts suggest that this inflation data will influence gold prices in the coming weeks.
Jatin Trivedi, a commodity and currency research analyst at LKP Securities, said that the impact of these inflation figures will also be reflected in the US Federal Reserve’s interest rate policy.
Meanwhile, strong inflows into gold exchange-traded funds (ETFs) are also driving bullish sentiment in the market.
The trade war concerns have further fueled the gold rally. At the beginning of this month, President Trump imposed a 20 per cent tariff on Chinese goods and a 25 per cent tariff on imports from Mexico and Canada.
These moves have raised concerns about global economic stability, making gold a preferred choice for investors.
(IANS)
