Gold prices at record high: Will it keep rising in near future?
Investors are flocking to gold as escalating trade tensions, U.S. tariff measures, and global uncertainties boost demand for the safe-haven asset. With prices soaring to record levels, the key question remains: Will gold continue its upward trajectory in the near future?
In Short
- Gold prices surge past Rs 89,000 amid global uncertainties
- US tariffs, trade tensions drive investors toward safe-haven gold
- Experts see further upside but await Fed policy signals
Gold prices have surged to new highs, with MCX gold crossing Rs 89,000 per 10 grams and international prices breaching $3,000 an ounce.
Investors are rushing to gold as trade tensions, US tariff policies, and global uncertainties drive demand for the safe-haven asset. So, why are gold prices on the rise?
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, "Gold prices surged above Rs 88,000 on MCX, supported by Comex gold crossing $3,000. The rally is fueled by continued US tariffs on multiple countries, especially the latest focus on European goods like alcohol and cognac.”
“Market participants are cautious, leading to sustained gold buying. This week’s US retail sales data and the Fed’s policy meeting will be crucial in determining the next move. The price range has now shifted to Rs 87,250Rs 88,650,” Trivedi added.
WILL GOLD PRICES KEEP RISING?
Tariff concerns have also been a major trigger for the recent rally, said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One Ltd.
"Gold has surged over 3% in the last week, driven by uncertainty over US tariffs, trade tensions, and expectations of monetary easing by the Federal Reserve. The European Union’s retaliation against US steel and aluminum tariffs and Trump’s threats to impose 200% duties on European wine and spirits have added to market jitters,” he added.
“Trump's tariffs are expected to fuel inflation, pushing gold to new records,” Mallya added that the gold rally may have more steam left.
Another factor driving gold higher is geopolitical risk. "Gold has surged past $3,000 an ounce, while silver is holding near $34. Geopolitical concerns, including Houthi rebel attacks in the Red Sea and U.S. warnings to Iran, have heightened market anxiety,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“The dollar index has slipped to a five-month low, further supporting gold and silver. Gold has support at $2,984$2,960 and resistance at $3,024$3,042, while in INR terms, support is at Rs 87,640Rs 87,420 and resistance at Rs 88,340Rs 88,550,” he added.
Gold’s rally is also supported by central bank buying and a weaker dollar. Experts believe that while gold could see more upside, it will depend on Fed policy signals and further global economic developments.
With the sustained rise in gold prices, many are wondering whether MCX gold will touch Rs 1,00,000 per 10 grams soon. Most analysts have do not expect it to happen soon, but it could become a reality in a couple of years if the current uptrend continues.