The bullion market experienced a significant surge in gold prices on Monday, with the precious metal reaching ₹1 lakh mark as it inched closer to the psychological barrier. The Indian markets witnessed a substantial increase in the prices of gold, which stood at ₹99,800 per 10 grams at the end of the day. This surge was primarily attributed to the weak dollar and the uncertainties surrounding the US-China trade war. **Factors Contributing to the Surge**
Several factors contributed to the surge in gold prices. Firstly, the weak dollar played a crucial role in increasing the prices of gold. The dollar’s weakness made gold more expensive for buyers in other countries, leading to an increase in demand for the precious metal. Secondly, the uncertainties surrounding the US-China trade war also contributed to the surge in gold prices. The ongoing trade tensions between the two countries led to increased uncertainty and instability in the global market, causing investors to seek safe-haven assets like gold.
- Trade tensions between the US and China
- Weakness in the US dollar
- Uncertainties over the US-China trade war
- Increased demand for safe-haven assets
**Global Gold Prices**
The global gold prices also witnessed a significant surge. The spot gold prices rose to a fresh peak of $3,397.18 per ounce in the international markets. This increase was attributed to the same factors that drove the surge in gold prices in India, including the weak dollar and the uncertainties surrounding the US-China trade war.
| Spot gold prices (per ounce) | $3,397.18 |
| Fresh peak | $3,400 |
**Gold Futures and ETF Investors**
The gold futures market also witnessed a significant surge. The gold futures for June delivery jumped ₹1,621, or 1.7%, to touch a fresh high of ₹96,875 per 10 grams on the Multi Commodity Exchange. The ETF investors also played a significant role in driving the surge in gold prices. The increased buying activity among ETF investors led to an increase in demand for gold, which in turn drove up the prices of the precious metal. **Market Experts’ Views**
Several market experts shared their views on the surge in gold prices. Satish Dondapati, Fund Manager at Kotak Mahindra AMC, stated that the trade tensions, rate cut expectations, geopolitical uncertainties, and weakening dollar had led to a significant increase in gold prices. Pranav Mer, Vice President, EBG of Commodity & Currency Research at JM Financial Services, also noted that the gold prices continued their positive momentum, driven by the trade tariff-related uncertainty, weakness in the US dollar, and rising Treasury yields. “The gold prices continued their rally as the US dollar fell to a new three-year low and safe-haven buying intensified following U.S. President Donald Trump’s threat to fire Federal Reserve Chair Jerome Powell,” Mer said. Key Highlights
* Gold prices inched closer to ₹1 lakh mark
* The yellow metal of 99.9% purity reached ₹99,800 per 10 grams
* Gold futures surged ₹1,621, or 1.7%, to touch a fresh high of ₹96,875 per 10 grams
* Spot silver in the Asian market hours rose nearly 1% to $32.85 per ounce
“The gold prices continued their positive momentum and have risen briefly above $3,400 per ounce, as trade tariff-related uncertainty, weakness in the US dollar and rising Treasury yields continue to keep the bullion supported.”
“Gold prices continued their rally as the US dollar fell to a new three-year low and safe-haven buying intensified following U.S. President Donald Trump’s threat to fire Federal Reserve Chair Jerome Powell.”
- Safe-haven assets
- Spot gold prices
- Futures market
- Safe-haven assets are financial instruments that investors seek during periods of economic uncertainty or turmoil.
- Spot gold prices refer to the current market price of gold.
- The futures market is a market where investors can buy and sell futures contracts, which are agreements to buy or sell a commodity at a set price on a specific date.
“The gold prices continued their rally as the US dollar fell to a new three-year low and safe-haven buying intensified following U.S. President Donald Trump’s threat to fire Federal Reserve Chair Jerome Powell,”
This surge in gold prices is expected to continue, driven by the ongoing trade tensions, rate cut expectations, geopolitical uncertainties, and weakening dollar. The market experts predict that the gold prices will continue their positive momentum, driven by the trade tariff-related uncertainty, weakness in the US dollar, and rising Treasury yields.
