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Gold rate in India hits its all-time high of Rs 82,840 per 10 grams on the MCX and silver jumps nearly Rs 800 to Rs 93,875 per kg as participants increase gold allocations amid safe-haven demand following US-triggered tariff war fears.
Gold Rate Jump.
Amid concerns over a potential Tariff War 2.0 following US President Donald Trump’s aggressive tariff impositions on Canada, Mexico and China, and likely on the European Union, gold and silver prices are surging. The gold rate in India hit its all-time high of Rs 82,840 per 10 grams on the MCX on Monday as participants increased gold allocations from the US-triggered safe-haven demand.
Gold rallied positively with a gain of Rs 490 to Rs 82,840 on the MCX, while silver jumped nearly Rs 800 to touch Rs 93,875 per kg.
Why Is Gold Rate Increasing?
Jateen Trivedi, vice-president (research analyst-commodity & currency) of LKP Securities, said, “Participants increased gold allocations as concerns over a potential Trade War 2.0 from the US triggered safe-haven demand. Trump’s aggressive tariff policies triggered a stronger dollar rally.”
The US administration imposed a 25% tariff on Canada and Mexico and a 10% tariff on China, with additional threats of higher duties on the Eurozone.
A direct warning to BRICS nations against de-dollarisation has escalated trade tensions, with Trump signalling 100% tariffs on BRICS if they push for alternatives to the dollar.
Echoing similar views, Rahul Kalantri, vice-president (commodities) of Mehta Equities, said gold and silver witnessed high volatility last week amid strength in the dollar index and the beginning of the US trade tariff war. The dollar index crossed the 108 mark once again after the US imposed a 25% tariff on Mexico and Canada and a 10% tariff on China last week. The dollar index also gained amid weakness in the euro after downbeat European data.
“However, the finance minister back home maintained the status quo on import duty of gold and silver in the Union budget that supported the metal prices,” Kalantri added.
In the international market, gold was trading higher by 0.29 per cent at $2,805 an ounce and silver was flat at $31.35 an ounce in New York.
Gold Prices: What’s Next?
Jateen Trivedi of LKP Securities said the uncertainty surrounding global trade imbalances has fuelled continued gold buying.
“The next target is Rs 83,000, with support at Rs 81,500,” Trivedi added.
Rahul Kalantri of Mehta Equities said gold and silver are holding their key support levels of $2,722 and $30.20 per troy ounce, respectively, on a weekly closing basis in the international markets.
“Gold has support at $2,774-2,760 while resistance is at $2,817-2,832. Silver has support at $31.15-30.95 and resistance is at $31.65-31.80. In rupee terms, gold has support at Rs 81,980-81,710, while resistance is at Rs 82,070-82,350. Silver has support at Rs 92,710-92,050 while resistance is at Rs 93,980-94,570,” he added.
