Gold prices on the Multi Commodity Exchange (MCX) have reached an all-time high, with the gold June futures rallying to Rs 99,178 per 10 grams. This surge is largely attributed to global uncertainty, particularly in the wake of heightened tensions between President Donald Trump and the US Federal Reserve over rate cuts and the intensifying trade war between the US and China.

• Comex gold was trading close to $3,395 per troy ounce on Tuesday, marking a sharp upward escalation.
• Experts point to several factors that contribute to the gold price increase.
• These factors include:
• Escalating global uncertainty due to the US-China trade tensions.
• Renewed tensions between President Donald Trump and the US Federal Reserve over rate cuts.
• The looming US debt crisis.
• Continued buying from China, global central banks, and institutional investors.

“The US President Donald Trump’s recent criticism of the US Fed Chair Jerome Powell has pulled down the US dollar rates to a three-year low. This is the major reason for gold prices today climbing to a new peak,” says Anuj Gupta, Head – Commodity & Currency at HDFC Securities.

“The brewing conflict between Trump and the Fed has now burst into the open, and global investors are no longer waiting to see how it ends. The risk is now twofold. First, Powell holds the line, and policy stays restrictive longer than markets had priced. Second, Trump intervenes—publicly or politically—sparking concerns over central bank independence,” says Nigel Green, CEO of deVere Group.

“Gold prices extended their record-breaking rally as the fresh week kicked off with strong early buying,” says Jateen Trivedi, VP Research Analyst at LKP Securities.

1. Factors contributing to the gold price increase include escalating US-China trade tensions, concerns over the US economic outlook, and the looming US debt crisis.
2. Continued buying from China, global central banks, and institutional investors has added momentum to the gold price rally.
3. Analysts predict that the gold price will remain volatile, with support and resistance levels ranging from Rs 96,750 to Rs 97,050 for gold, and Rs 94,680 to Rs 97,550 for silver.

Gold prices have escalated over 26% or Rs 20,800 per 10 grams so far in 2025, making it a volatile and uncertain market for investors. The latest surge in gold prices is a clear indication of the ongoing global economic uncertainty and the rising demand for safe-haven assets like gold.

As the global economic situation continues to unfold, investors are advised to remain cautious and monitor the market closely. The gold price rally is expected to remain volatile, with continued buying from China, global central banks, and institutional investors adding momentum to the price increase.

With the looming US debt crisis and escalating US-China trade tensions, gold prices are likely to continue their upward trajectory, making it a volatile and uncertain market for investors. As the situation continues to unfold, it is essential for investors to remain informed and adapt to the changing market conditions.

“The risk is now twofold. Second, Trump intervenes—publicly or politically—sparking concerns over central bank independence,”

states Nigel Green, CEO of deVere Group.

As the gold price rally continues, investors should be prepared for a potential decline in the price, making it essential to stay informed and adapt to the changing market conditions.

• Safe-haven assets: assets that investors seek refuge in during times of economic uncertainty, such as gold and bonds.

• Gold prices have reached an all-time high of Rs 99,178 per 10 grams on the Multi Commodity Exchange (MCX).

• Rs 99,178: the new record high of gold prices on the MCX.

• Rs 1,900: the increase in gold prices from its previous closure.

• Rs 96,750-96,200: the support level for gold prices.

• Rs 97,050-97,690: the resistance level for gold prices.

• Rs 94,680: the support level for silver prices.

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