Gold prices have been surging globally in recent days, and investors are now closely watching whether the price will surpass the ₹1 lakh mark. This upward movement is primarily due to escalating trade tensions between the US and China, combined with a weakening US dollar, which has once again made gold a “safe haven.”
Local Market Sets New Record: On Friday, the price of gold on MCX reached ₹93,940 per 10 grams and closed at ₹93,887. This marks a weekly increase of ₹5,757, or approximately 6.53%. Previously, the price was ₹88,130 per 10 grams.
International Market Sets New Record: In the global market, gold reached a new peak of $3,245 per ounce, closing at $3,236.21, reflecting a weekly increase of 6.41%. The dollar index dropped below 100 for the first time in two years, settling at 99.89.
Why Are Gold Prices Rising?
-
US-China Trade War: The Trump administration imposed heavy tariffs on China, while providing temporary relief to other countries. This has directly impacted trade relations. The US imposed tariffs as high as 145% on certain Chinese goods, and in retaliation, China imposed tariffs ranging from 84% to 125%.
-
Weak Dollar: The dollar index fell below 99, providing support to gold. When the dollar weakens, investors tend to move their assets into gold as a safer investment option.
-
Anticipated Federal Reserve Rate Cuts: With inflation data in the US coming in weaker than expected, it is anticipated that the US Federal Reserve may cut interest rates this year. This has further boosted the appeal of gold.
What’s Next? Experts predict that gold prices could reach new levels of ₹95,000 to ₹95,500 per 10 grams in the near term. In the long run, gold may even cross the ₹1 lakh per 10 grams mark. On the international front, gold prices could rise to a range of $3,280 to $3,320 per ounce.
