As gold prices continue to ascend, the market is buzzing with activity amid various global factors. On Wednesday morning, the MCX gold rate for June 2025 surged, beginning at ₹91,229 per 10 grams and quickly reaching an intraday high of ₹91,232 shortly after trading began. Meanwhile, in the international arena, the spot price of gold is hovering around $3,125 per ounce, while COMEX gold stands at approximately $3,155 per troy ounce.
Key Drivers Behind Rising Gold Prices
Several critical elements are influencing the current gold market dynamics. Manav Modi, a Senior Analyst in Commodity Research at Motilal Oswal, highlighted five main factors that could steer gold prices today:
- Donald Trump’s tariff threats
- Geopolitical tensions
- A decrease in the US dollar index
- Increased central bank buying
- Heightened investor demand and expectations of US Federal Reserve rate cuts
Geopolitical strife, particularly the US-Iran tensions and ongoing conflicts involving Israel and Hamas, are significantly propelling gold’s upward trend, even amidst reports of ceasefires.
Safe-Haven Demand Fuels Gold Rally
Anuj Gupta, the Head of Commodity & Currency at HDFC Securities, echoed these sentiments, attributing the gold surge to substantial safe-haven demand. This demand stems from fears of a potential global trade war and its implications for economic growth. He added that robust purchasing by central banks and strong inflows into ETFs are also contributing to this impressive rise in gold prices.
Impact of Trump’s Tariff Plans
Gupta emphasized the importance of President Donald Trump’s upcoming tariff implementations, scheduled for April 2. He noted that this event is capturing the market’s attention, and until then, we may see risk premiums building up in gold prices.
Critical Levels to Watch in Gold Trading
When discussing essential levels for MCX gold, Gupta advised that a solid support base exists at ₹90,200 per 10 grams, while resistance is found at ₹92,625. For those considering short-term investments, he suggested buying gold within the range of ₹90,900 to ₹91,000 per 10 grams, aiming for a target of ₹92,625. However, he cautioned traders to implement a stop-loss at ₹90,180 when entering new positions in gold.
Conclusion: Navigating the Gold Market
With various geopolitical and economic factors at play, gold remains a focal point for investors. Staying informed about these driving forces can help traders make more strategic decisions in this volatile market. For the latest updates, make sure to keep an eye on market trends and expert analyses.
