Gold prices surged on Friday on the Multi Commodity Exchange (MCX), capitalizing on a significant increase in international bullion rates. As trade tensions escalate globally, many investors are flocking to gold as a safe haven, causing prices to soar. The MCX gold rate commenced the day at ₹92,463 per 10 grams, a jump from the previous closing of ₹92,033, and quickly reached a staggering high of ₹93,736. Similarly, MCX silver opened at ₹92,000 per kg compared to its last close of ₹91,595.
Morning Trading Highlights
By 9:10 AM, the MCX gold price was trading at ₹93,518, reflecting an increase of ₹1,485 or 1.61%, while silver gained ₹755 or 0.82%, bringing its price to ₹92,350 per kg. This upward trend in gold prices is largely influenced by international market movements, where gold breached the critical $3,200 per ounce mark for the first time ever. Spot gold increased by 1.3%, reaching $3,216.48 per ounce, and peaked at $3,219.73 earlier in the trading session, marking over a 5% weekly gain.
Insights from Market Experts
“Gold has experienced a notable upside breakout amid rising tariff war concerns,” explained Ajay Kedia, Director of Kedia Advisory. “Current market dynamics indicate strong short-covering in gold, and the gold-silver ratio has exceeded 102, signaling traders’ preference for gold over silver. However, caution is advised due to ongoing global market volatility.”
The weaker U.S. dollar has contributed to this surge, making bullion more affordable for international buyers. As trade war fears mount, investors are increasingly turning to gold for security.
Trade War Context
Tensions between the U.S. and China have escalated, with President Donald Trump imposing tariffs on Chinese imports of up to 145%. However, a 90-day pause was introduced for new tariffs on multiple countries. In response, China has reciprocated with its own tariff increases, raising concerns that their tariffs on U.S. goods could surpass the current 84%, according to reports.
Future Gold Price Predictions
Looking ahead, Ajay Kedia anticipates that international gold prices could reach $3,320, with MCX gold potentially hitting ₹95,000 per 10 grams. “We expect gold prices to find support around ₹90,000, while resistance is anticipated at ₹95,000 on the MCX,” Kedia added.
In summary, with escalating trade tensions and a fluctuating dollar, the outlook for gold remains bullish, making it a focal point for investors seeking stability in uncertain times.
