Gold Prices Hit Record Rs 96,450 as US-China Trade War Intensifies and Safe-Haven Demand Soars
Gold prices witnessed a historic surge on Friday as the intensifying US-China trade war fueled a robust safe-haven demand, pushing the precious metal to a record-breaking high in both domestic and international markets. In the national capital, gold of 99.9 per cent purity jumped by a staggering Rs 6,250, reaching an all-time high of Rs 96,450 per 10 grams, as per data from the All India Sarafa Association. This marks a sharp rebound from the previous closing rate of Rs 90,200 on Wednesday. Gold of 99.5 per cent purity also surged significantly, climbing from Rs 89,750 to touch a new record of Rs 96,000 per 10 grams, defying the recent four-day streak of decline and indicating renewed buying interest from jewellers and retailers across the country.
Silver prices too mirrored gold’s upward momentum, surging by Rs 2,300 to Rs 95,500 per kilogram from its last close of Rs 93,200. This steep rise aligns with global trends, where increased volatility and uncertainty are prompting investors to shift their focus to safe-haven assets like precious metals. The surge in bullion prices also follows a brief market pause, as trading remained shut on Thursday due to Mahavir Jayanti, setting the stage for pent-up demand to impact Friday’s price movement dramatically.
Gold futures for June delivery on the Multi Commodity Exchange (MCX) soared by Rs 1,703, reaching a record-breaking Rs 93,736 per 10 grams, further signaling bullish investor sentiment despite the strength of the Indian rupee. Jateen Trivedi, Vice President Research Analyst for Commodity and Currency at LKP Securities, highlighted that gold continued its record-setting rally on MCX, climbing near Rs 93,500 amid heightened geopolitical tensions and tariff disputes between the world’s two largest economies.
Globally, spot gold surged to an unprecedented peak of USD 3,237.39 per ounce before marginally retreating to USD 3,222.04 per ounce. Simultaneously, Comex gold futures in Asian trading hours hit a fresh all-time high of USD 3,249.16 per ounce. According to Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, Comex gold prices are being propelled by safe-haven buying as global investors react to the escalating trade tensions and economic uncertainties sparked by the US-China standoff.
The latest round of tariffs, imposed by the Trump administration with rates as high as 145 per cent on Chinese imports, has triggered immediate retaliatory duties by China, reaching up to 125 per cent. This tit-for-tat escalation has intensified concerns over a deepening economic conflict and raised fears of a broader global slowdown, contributing to the weakening of the US dollar, which fell below the critical 100 mark. A softer dollar traditionally boosts the appeal of gold, making it cheaper and more attractive for investors holding other currencies.
UBS, a leading investment banking and global wealth management firm, emphasized that multiple ongoing concerns — including the trade war, fears of stagflation, recessionary risks, and geopolitical instability — are likely to keep investor interest in gold high. The move by central banks worldwide to diversify reserves away from the US dollar has already resulted in record purchases of over 1,000 metric tons of gold annually for the past three years. This strategic shift is expected to continue irrespective of the trade war dynamics, further supporting long-term bullish sentiment for gold.
As global markets reel under economic uncertainties and mounting geopolitical tensions, gold is reasserting its traditional role as a store of value. With increasing investor focus on wealth preservation, the precious metal is set to maintain its upward trajectory, supported by robust institutional and retail demand.
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