Gold Prices Surge Amid Trade Tensions and Economic Uncertainty
In a remarkable turn of events, the price of gold has surged, reaching a staggering ₹91,464 per 10 grams for the June 5 contract on the MCX. As of approximately 6:05 PM, this contract experienced a 1.60% increase, climbing to ₹91,236. This upward trend in gold prices is largely attributed to ongoing uncertainties stemming from the trade war.
Global Gold Prices on the Rise
Internationally, gold has seen a significant boost due to escalating trade tensions. The Comex gold market noted an impressive increase of nearly 2% during the trading session. This surge was notably influenced by an announcement from U.S. President Donald Trump, who declared a 90-day pause on reciprocal tariffs while simultaneously imposing extortionate duties of 125% on imports from China.
Highlights of the Recent Gold Price Movements:
- Gold prices surged nearly 3% to an all-time high on Thursday.
- The decline of the U.S. dollar has made gold more attractive to investors.
- Spot gold prices jumped 2.8%, reaching $3,168.26 an ounce at 11:32 AM ET.
- Earlier in the session, spot gold had achieved a record high of $3,171.49.
- U.S. gold futures rose by 3.5%, reaching $3,185.50.
Investor Sentiment and Safe Haven Assets
The current economic climate has led many investors to gravitate towards gold, a traditional safe-haven asset, amid fears of a prolonged trade conflict. With the situation evolving rapidly, market analysts suggest that these price hikes may continue if geopolitical tensions remain unresolved.
In summary, the gold market is experiencing unprecedented highs fueled by trade war anxieties and currency fluctuations. Investors are keenly observing these developments, as the allure of gold as a secure investment option continues to grow in uncertain times.
