New Delhi– Gold prices in India surged to a new all-time high on Monday, reaching ₹96,805 per 10 grams (approximately $1,162), as investors flocked to the safe-haven asset amid growing global trade tensions and a weakening U.S. dollar.
As of 1:30 p.m., the ‘MCX Gold June 5’ contract was trading at ₹96,830 ($1,162) per 10 grams on the Multi Commodity Exchange (MCX), up 1.65% for the day.
Spot gold rates also climbed sharply. According to the India Bullion and Jewellers Association (IBJA), 24-carat fine gold (999 purity) was priced at ₹9,659 ($116) per gram, while 22-carat gold stood at ₹9,427 ($113). Prices for 20-carat and 18-carat gold were ₹8,596 ($103) and ₹7,824 ($94) per gram, respectively.
The domestic rally closely followed global trends. International spot gold hit a new record of $3,384 per ounce as mounting geopolitical uncertainty—particularly trade tensions between the U.S. and China—prompted a flight to safety among investors.
Another key factor driving gold’s ascent is the weakening U.S. dollar. The dollar index recently fell to a three-year low, making gold more attractive to investors holding other currencies. Since gold is priced in dollars, a weaker dollar effectively lowers its cost for international buyers, increasing demand.
In contrast, gold had slipped by 0.44% in the previous trading session, closing at ₹95,239 ($1,144) per 10 grams, amid profit booking. But renewed concerns about a prolonged trade war reignited buying interest at lower levels.
“Gold prices continued their positive momentum, briefly climbing above $3,400 per ounce,” said Pranav Mer, analyst at JM Financial Services. “Uncertainty around global tariffs, a softer U.S. dollar, and elevated U.S. bond yields are supporting high bullion prices.”
Mer added that increased buying from exchange-traded funds (ETFs) and anticipated festive season demand in India are further propping up prices.
“Market participants will also be closely watching trade negotiations between the U.S. and major partners such as Japan, the Eurozone, and China, which could influence gold’s next moves,” he noted.
From a technical standpoint, Mer said gold now has support levels at ₹95,550 ($1,147) and ₹94,200 ($1,131), with the next resistance levels seen at ₹97,580 ($1,172) and ₹98,200 ($1,179). If the current momentum continues, analysts believe gold may soon breach the psychological ₹100,000 per 10 grams mark—equivalent to about $1,200—setting yet another milestone in the precious metal’s ongoing rally. (Source: IANS)
