On Monday, gold prices on the Multi Commodity Exchange (MCX) experienced a notable increase, driven by a surge in safe-haven demand as global equity markets faced significant downturns. Silver also saw a boost, rising by 2%. Gold traded up by ₹301, or 0.34%, bringing the price to ₹88,376.00, while silver climbed by ₹1,487, or 1.71%, reaching ₹88,698 per kg.
Global Market Impact on Gold and Silver Prices
In the international arena, gold hit its lowest point in over three weeks, primarily influenced by a broad market sell-off triggered by US President Donald Trump’s new tariff policies. According to market reports, the spot gold price fell by 1.9% to $2,981.09 per ounce, marking its lowest level since March 13. This decline came after gold reached a historic high of $3,167.57 on April 3. Meanwhile, US gold futures dipped 1.3% to $2,997.40, and spot silver saw a significant decrease of 2.8%, settling at $28.74 an ounce, the lowest in nearly seven months.
Factors Contributing to Price Fluctuations
The recent volatility in gold and silver prices can be attributed to escalating trade tensions between the United States and its trading partners. The US’s imposition of reciprocal tariffs has led China to respond with a 34% tariff on American imports, further straining market conditions. In addition, comments from Jerome Powell, the Chairman of the US Federal Reserve, and a weaker-than-anticipated March non-farm payroll report have intensified bearish sentiment in the precious metals sector.
Insights on Future Gold Prices
According to Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, the current volatility in financial markets is likely to continue. He outlined potential support and resistance levels for gold and silver:
- Gold Support: $3,000 – $2,978
- Gold Resistance: $3,055 – $3,075
- Silver Support: $29.48 – $29.20
- Silver Resistance: $30.10 – $30.46
In Indian Rupees, gold support levels are at ₹87,760 – ₹87,350, while resistance levels stand at ₹88,610 – ₹89,190. Silver support is noted at ₹86,600 – ₹85,650, with resistance at ₹89,500 – ₹90,950.
Stock Market Turmoil
The Indian stock market mirrored global trends on Monday, experiencing a dramatic crash amid fears of a recession fueled by ongoing trade wars. The Sensex plummeted by as much as 4,000 points, and the Nifty 50 fell below 21,800 during early trading. This turmoil reflects growing concerns about economic stability in light of escalating international trade tensions.
Stay informed with the latest updates on the stock market and precious metals to understand how these fluctuations may impact your investments.
