Gold prices broke through the ₹97,000 barrier for the first time in futures trading on Monday, reaching a record high of ₹97,365 per 10 grams. This is the third consecutive day that gold prices have seen a surge, with the most-traded June delivery contract of the precious metal soaring by ₹2,111 or 2.22 per cent to hit an all-time high on the Multi Commodity Exchange (MCX). The sharp increase in gold prices can be attributed to several factors, including the impact of escalating tariff tensions and concerns over the US economic outlook, as well as the looming US debt crisis. • **Escalating tariff tensions**: The ongoing US-China trade tensions have created uncertainty in the global economy, leading investors to seek safe-haven assets like gold. • **US economic outlook**: Concerns over the US economic slowdown due to heightened US-China trade tensions have also contributed to the surge in gold prices. • **US debt crisis**: The looming US debt crisis has added to the uncertainty, making gold a more attractive option for investors seeking stability. The rally in gold prices is being supported by continued buying from China, global central banks, and institutional investors. According to Kotak Securities, Comex gold futures surpassed the $3,400-mark for the first time on Monday, mainly due to:
• **Weakening US dollar**: The US dollar has weakened, making dollar-denominated gold more affordable for international buyers. • **Increased concerns about global economic slowdown**: Heightened US-China trade tensions have led to increased concerns about a global economic slowdown. • **US President Trump’s tariffs and trade policy uncertainties**: Trump’s recent criticism of US Federal Reserve Chair Jerome Powell has contributed to the dollar’s three-year low. The gold market has seen a significant surge in prices, with the following highlights:
| Contract | Price (₹/10 grams) | Price Change (%) |
|---|---|---|
| June | ₹97,365 | 2.22% |
| August | ₹98,000 | 2.19% |
| October | ₹98,600 | 2.73% |
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said:
“Gold prices extended their record-breaking rally as the fresh week kicked off with strong early buying. Comex gold approached the USD 3,400 mark, while MCX gold registered its fresh all-time highs.”
The rally is being driven by the increased demand for gold from China, global central banks, and institutional investors. Definition of key terms:
: The Commodity Exchange, a global exchange for commodities like gold.
: The US dollar.
: Gold traded on the Commodity Exchange.
: Gold traded on the Multi Commodity Exchange. A word from Jateen Trivedi:
“Gold prices extended their record-breaking rally as the fresh week kicked off with strong early buying. Comex gold approached the USD 3,400 mark, while MCX gold registered its fresh all-time highs.”
Key Highlights:
* Gold prices broke through ₹97,000 for the first time in futures trading on Monday. * The most-traded June delivery contract of the precious metal soared by ₹2,111 or 2.22 per cent to hit an all-time high on the Multi Commodity Exchange (MCX). * Comex gold futures surpassed the $3,400-mark for the first time on Monday. * The rally is being supported by continued buying from China, global central banks, and institutional investors. The gold market has seen a significant surge in prices, with the October contract breaching ₹98,000 for the first time. The market is expected to continue its rally, driven by increased demand for gold from China, global central banks, and institutional investors. The current rally is being driven by the following factors:
• **Escalating tariff tensions**: The ongoing US-China trade tensions have created uncertainty in the global economy, leading investors to seek safe-haven assets like gold. The rally is expected to continue, with gold prices poised to break through the ₹100,000 barrier in the near future. The market is expected to remain bullish, driven by the increased demand for gold from China, global central banks, and institutional investors.
