Daijiworld Media Network - New Delhi
New Delhi, Mar 13: Gold prices hit a historic peak on Thursday as market volatility and global economic concerns drove investors toward the precious metal.
On the Multi Commodity Exchange (MCX), April futures for 24-carat gold surged by 0.21%, reaching ?86,875 per 10 grams. This upward trend reflects a growing demand for gold as a safe-haven asset amid geopolitical tensions and economic instability.
The international gold price climbed to $2,945 per ounce on March 13, fueled by uncertainties surrounding US trade policies. According to the Indian Bullion Jewellers Association (IBJA), spot gold prices in India stood at ?86,670 per 10 grams for 24-carat gold, while 22-carat gold was priced at ?84,590 per 10 grams. Other gold variants also witnessed gains, with 20-carat, 18-carat, and 14-carat gold priced at ?77,140, ?70,200, and ?55,900 per 10 grams, respectively.
Experts attribute the gold rally to escalating trade tensions and shifts in economic policy. The recent decision by US President Donald Trump to impose a 20% tariff on Chinese goods and a 25% tariff on imports from Mexico and Canada has heightened concerns about global trade stability. Investors, seeking security amid market uncertainty, have turned to gold, further driving up its value.
Additionally, easing inflation in the US is playing a pivotal role in gold’s price movement. Recent data revealed that US inflation stood at 2.8%, lower than the anticipated 3%, raising expectations of potential interest rate cuts by the Federal Reserve. Lower interest rates tend to boost gold prices by reducing the opportunity cost of holding the non-yielding asset.
Jatin Trivedi, a research analyst at LKP Securities, noted that the Federal Reserve’s upcoming interest rate decisions will likely influence gold’s trajectory in the coming weeks. Meanwhile, strong inflows into gold exchange-traded funds (ETFs) signal continued bullish sentiment in the market.
With trade conflicts intensifying and economic uncertainty looming, gold is expected to remain a preferred investment choice for investors seeking stability in turbulent times.