On Wednesday, gold prices soared to unprecedented heights on the Multi Commodity Exchange of India (MCX), driven by a surge in global bullion values. This spike is largely attributed to increasing safe-haven demand amidst rising trade tensions and worries about the global economy. As of April 16, the MCX gold rate crossed the ₹95,000 mark, opening at ₹94,573, significantly up from the previous close of ₹93,451.
Record High Gold Prices
The price of gold surged by as much as ₹1,984, or 2.12%, reaching a historic high of ₹95,435 for every 10 grams. By 1:35 PM, the gold rate settled at ₹95,387, reflecting an increase of ₹1,936, or 2.07%. In addition, silver also saw a rise, trading at ₹96,840 per kilogram, up by ₹2,066, or 2.18%.
- April 2021: Gold was priced around ₹47,000 for 10 grams.
- Current Surge: Over the last four years, gold prices have more than doubled.
International Market Trends
The international gold market mirrored these trends, with spot gold climbing 1.9% to reach $3,287.79 an ounce, even hitting an all-time peak of $3,294.99 earlier in the session. U.S. gold futures also rose nearly 2%, reaching $3,304.20. The weakening U.S. dollar, which fell 0.7% against other currencies, has made gold a more appealing option for international investors.
Expert Insights
According to Sugandha Sachdeva, founder of SS WealthStreet, "Gold has successfully broken through significant resistance levels, moving beyond the crucial $3,200 per ounce mark. This indicates strong bullish momentum, with potential targets around $3,280 to $3,320 per ounce." On the Indian front, the breach of the previous ₹91,500 per 10 grams resistance suggests that gold may soon approach the ₹95,000 to ₹95,500 range.
Investment Demand on the Rise
Investment interest in gold remains robust, with the World Gold Council reporting that Chinese gold ETFs saw substantial inflows, rising by 29.1 metric tons within the first eleven days of April. This inflow has already outpaced the total amounts for the first quarter and exceeds those of U.S.-listed gold funds.
- Gold’s Appeal: Traditionally regarded as a safe-haven asset during geopolitical and economic turmoil, gold has achieved numerous record highs this year, boasting an impressive gain of over 25%.
In summary, amid a backdrop of economic uncertainty and fluctuating currency values, gold continues to shine as a preferred investment choice for many, reflecting its enduring appeal and stability in turbulent times.
