On Friday, gold prices on the Multi Commodity Exchange (MCX) experienced a significant rise, buoyed by a surge in international bullion rates reaching unprecedented levels. This increase is largely attributed to safe-haven buying in response to escalating tensions in the global trade landscape. The MCX gold rate opened at ₹92,463 per 10 grams, a notable uptick from the previous close of ₹92,033, and even peaked at a staggering ₹93,736. Meanwhile, silver prices also saw movement, opening at ₹92,000 per kg compared to the prior close of ₹91,595.

International Market Influences

Gold’s impressive gain of nearly 2% pushed it beyond the crucial $3,200 mark, fueled by a weakening dollar and rising recession fears stemming from the intensifying trade conflict between the U.S. and China. As of 10:20 GMT, spot gold had surged by 1.7% to $3,227.39 an ounce, after reaching an all-time high of $3,237.56 earlier in the day. This week alone, bullion has appreciated by over 6%.

• U.S. gold futures rose by more than 2% to $3,246.30.
• Spot gold has continued its impressive rally from last year, achieving multiple record highs and an increase of nearly 21% in 2023.

Future Expectations

Market analysts anticipate that the Federal Reserve may resume interest rate cuts as early as June, with a potential total reduction of a full percentage point by the end of 2025. Meanwhile, silver prices gained 0.8% to $31.46 an ounce, while platinum and palladium also saw slight increases, with platinum at $940.45 and palladium climbing 2.05% to $927.29.

Expert Insights

Jateen Trivedi, Vice President of Research at LKP Securities, commented on the bullish trend for gold, stating, “Gold has continued its record-setting trend, seeing an increase of ₹1,500 to set new lifetime highs close to ₹93,500 on the MCX. This rally persists despite the strength of the rupee, as geopolitical tensions and tariff disputes between the U.S. and China escalate. The reciprocal tariff measures have introduced further uncertainty into global trade, driving investors toward safe-haven assets like gold.”

He further elaborated, “The sentiment remains strongly bullish for bullion due to robust global indicators and economic concerns, even with the appreciation of the domestic currency. Buyers are eyeing a resistance zone between ₹94,500 and ₹95,000, while ₹92,000 serves as key support. Ongoing developments in trade disputes and investor sentiment ahead of significant global economic announcements will likely influence future price movements.”

In summary, as gold continues to shine amid global uncertainties, traders and investors are closely monitoring ongoing geopolitical developments and economic indicators to navigate this dynamic market effectively.