Gold prices have hit a new peak today, marking the seventh time this year that the MCX gold rate has reached a record high. The price of gold rose sharply, opening with an upside gap and climbing to ₹90,830 per 10 grams, surpassing the previous record of ₹90,797 per 10 grams.
Globally, spot gold is trading around $3,145 per ounce, while the COMEX gold price is at $3,174 per troy ounce.
Key Factors Driving Gold’s Price Surge
Experts attribute the ongoing rise in gold prices to a combination of factors. Sugandha Sachdeva, founder of SS WealthStreet, explains that gold’s impressive performance can be traced to geopolitical tensions, low interest rates, economic uncertainties, and concerns over inflation. She highlights the impact of trade disputes sparked by US President Donald Trump’s policies, which have contributed to the growing demand for gold as a safe-haven asset.
“The price surge is not random,” Sachdeva says. “A volatile geopolitical landscape, declining interest rates, and the fear of an escalating global trade war have created a strong demand for gold.” She also mentions that central banks’ increased gold purchases and strong inflows into gold ETFs have further fueled the rally.
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, adds that the market is closely watching the Trump administration’s planned tariff actions, set to take effect on April 2. He predicts that the fear of trade tensions will continue to drive risk premiums on gold.
Central Banks and Gold ETFs Boost Demand
Central banks around the world are diversifying their reserves, shifting away from the US dollar and significantly increasing their gold holdings. Over the past three years, central banks have been buying over 1,000 tonnes of gold annually. In addition, gold ETFs have seen a resurgence, attracting $9.4 billion in net inflows in February alone—the largest monthly influx since March 2022.
China has also played a role in increasing demand by allowing its 10 largest insurance companies to invest up to 1% of their assets in gold, potentially adding $27 billion to the market.
Gold’s Price Outlook
Looking ahead, Sachdeva notes that gold’s technical momentum remains strong. After breaking the crucial resistance level of $3,035 per ounce, gold could reach $3,200 per ounce in the medium term. However, the recent appreciation of the Indian rupee has created some resistance for domestic gold prices, which face a key level at ₹89,950 per 10 grams. A break above this level could push prices toward ₹91,200 per 10 grams in the near term, with the potential to reach ₹94,000 per 10 grams in the medium term.
Investment Caution
It’s important for investors to keep in mind that the views expressed in this article are those of individual analysts and not of Mint. Experts advise checking with certified professionals before making any investment decisions.
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