Gold prices in India surged to an all-time high of ₹96,805 per 10 grams on Monday, driven by fears of a prolonged global trade war and a weakening US dollar that has propelled investors toward the safety of the yellow metal. The ‘MCX Gold June 5’ contract reflected this trend, trading at ₹96,830 per 10 grams, marking a 1.65 percent increase during afternoon trading.
Spot gold prices in India also reflected similar growth. Data from the India Bullion and Jewellers Association (IBJA) showed fine gold (999 purity) priced at ₹9,659 per gram, with 22-carat gold at ₹9,427 per gram. Prices for 20-carat and 18-carat gold were recorded at ₹8,596 and ₹7,824 per gram, respectively. Internationally, spot gold reached its own record of $3,384 per ounce.
Market analysts attribute the rally to the weakening US dollar, which recently hit a three-year low. Since gold is priced in dollars, its affordability increases for buyers using other currencies, thereby driving demand. Investors have also sought refuge in gold as trade tensions escalate between major economies like the United States and China.
A recent dip in MCX gold prices, where they dropped 0.44 percent to ₹95,239 per 10 grams due to profit booking, created an opportunity for fresh buying at lower levels. Concerns about trade tariffs and volatile US bond yields have further sustained the upward momentum.
Pranav Mer of JM Financial Services Limited emphasized that additional factors are supporting gold prices, including increased interest from exchange-traded funds (ETFs) and the festive demand typically seen in India. He noted that traders are closely monitoring ongoing trade negotiations between the US and other global partners, which may influence market dynamics.
Technical analysis indicates gold prices currently hold support at ₹95,550 and ₹94,200. Resistance levels have been identified at ₹97,580 and ₹98,200, suggesting potential for further growth in the short term. Analysts remain optimistic about gold reaching the psychological ₹1,00,000 per 10 grams mark if current trends persist, reflecting its enduring appeal as a secure investment amid global uncertainties.
