Trump’s tariffs send gold soaring to new peak, yellow metal tops Rs 86,000/10 gm mark

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Gold April futures contracts on MCX continued their massive rally, surging above the Rs 86,000/10 gram level. The yellow metal opened higher on Tuesday at a new all-time high of Rs 86,350 per 10 grams, up by 0.62% or Rs 534.

Meanwhile, silver March futures contracts were trading at Rs 95,373/kg, up by 0.08% or Rs 72.

On Monday, gold and silver settled on a mixed note in the domestic market and on a positive note in the international markets. The mixed sentiment in the domestic market persisted despite a weaker rupee.

Gold April futures contract settled at Rs 85,816 per 10 grams with a gain of 1.09% while silver March futures contract settled at Rs 95,295 per kilogram with a loss of 0.04%.

Gold and silver prices gained in the international markets and gold prices hit record highs amid global uncertainty and safe-haven buying. The US President’s comment for imposing 25% tariffs on import of steel and aluminium and increased global trade worries and investors are moving towards safe-haven assets.

“Gold prices also gained after China started a pilot program that allowed insurers to buy gold for the first time and that move could free up to $27 billion of funds. Gold prices are moving towards $3,000 per troy ounce levels. However, the dollar index also gained and crossed 108 marks and could limit gains of precious metals,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 108.46 mark, gaining 0.14 or 0.13%.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and the US trade war and ahead of the US Fed Chairman’s testify,” Jain added.

Ranges for gold and silver by Manoj Kumar Jain:

  • At MCX, gold has support at Rs 85,350-84,800 and resistance at Rs 86,200-86,650.
  • Silver has support at Rs 94,400-93,750 and resistance at Rs 96,000-96,650.

Jain suggests buying silver around Rs 95,000 with a stop loss of Rs 94,350 for a target of Rs 96,600.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 58,304/8 grams while pure gold (24 carat) prices stand at Rs 62,208/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,200/8 grams while pure gold (24 carat) prices stand at Rs 60,928/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,976/8 grams while pure gold (24 carat) prices stand at Rs 60,744/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 56,928/8 grams while pure gold (24 carat) prices stand at Rs 60,720/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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