Gold Prices at Record High: What’s Driving the Surge?

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Gold prices at record high levels have captured global attention as MCX gold surpassed ₹89,000 per 10 grams, while international gold prices breached $3,000 per ounce. The sharp rise is driven by global economic uncertainties, geopolitical tensions, and trade disputes, pushing investors toward gold as a safe-haven asset.

With gold prices continuing to soar, many are wondering: Will gold prices keep rising, or is a correction on the horizon?

Why Are Gold Prices at Record High?

Several economic and geopolitical factors have contributed to gold prices at record high levels.

1. US Tariffs and Trade Tensions

One of the key reasons for gold prices at record high levels is the uncertainty surrounding US trade policies and tariffs.

Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, highlighted how US tariffs have played a crucial role in driving gold prices higher.

“Gold prices surged above ₹88,000 on MCX, supported by Comex gold crossing $3,000. The rally is fueled by continued US tariffs on multiple countries, especially the latest focus on European goods like alcohol and cognac,” said Trivedi.

Trade disputes between the US and the European Union (EU) have further contributed to gold prices at record high, as investors seek safer investments amid growing market uncertainty.

2. Federal Reserve Policy and Inflation Fears

Expectations of monetary easing by the US Federal Reserve have also pushed gold prices at record high levels.

Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One Ltd, noted that gold prices have surged over 3% in the last week, largely due to concerns about US tariffs, trade tensions, and the Federal Reserve’s policies.

“The European Union’s retaliation against US steel and aluminum tariffs and Trump’s threats to impose 200% duties on European wine and spirits have fueled market jitters,” he added.

3. Geopolitical Uncertainty and Safe-Haven Demand

Another significant factor pushing gold prices at record high levels is geopolitical instability.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd, pointed out that Middle East tensions and other global conflicts have added to gold’s appeal as a safe-haven asset.

“Gold has surged past $3,000 an ounce, while silver is holding near $34. Geopolitical concerns, including Houthi rebel attacks in the Red Sea and U.S. warnings to Iran, have heightened market anxiety,” Kalantri explained.

Additionally, the US dollar index has slipped to a five-month low, further boosting gold prices at record high levels.

Key Support and Resistance Levels:

  • Gold (International Prices): Support at $2,984 – $2,960, Resistance at $3,024 – $3,042
  • Gold (MCX Prices in INR): Support at ₹87,640 – ₹87,420, Resistance at ₹88,340 – ₹88,550

Will Gold Prices at Record High Levels Keep Rising?

1. Impact of US Federal Reserve Decisions

The Federal Reserve’s upcoming policy meeting will play a crucial role in determining whether gold prices at record high levels will continue.

If the Fed signals interest rate cuts, it could further weaken the US dollar, leading to higher gold prices. However, if inflation concerns persist, gold prices may stabilize or witness minor corrections.

2. Geopolitical Uncertainties and Safe-Haven Demand

Gold is often considered a safe-haven asset in times of economic instability. If global conflicts, trade wars, or inflation fears escalate, gold prices at record high levels could continue to rise.

On the other hand, any diplomatic resolutions or easing trade tensions may limit gold’s upward momentum.

3. Central Bank Buying and Market Demand

Many global central banks have been increasing their gold reserves, contributing to gold prices at record high. If this trend continues, gold may witness sustained growth over the long term.

Will MCX Gold Touch ₹1,00,000 Per 10 Grams?

With gold prices at record high, speculation is growing over whether MCX gold could reach ₹1,00,000 per 10 grams.

While some analysts believe this milestone is still a few years away, others suggest that if the current trend continues, gold could hit ₹1,00,000 per 10 grams sooner than expected.

However, short-term price movements will depend on global economic conditions, inflation trends, and the Federal Reserve’s monetary policies.

Key Takeaways on Gold Prices at Record High Levels

  • Gold prices at record high as MCX gold crosses ₹89,000 per 10 grams and international prices breach $3,000 per ounce.
  • US tariffs, Federal Reserve policies, and geopolitical risks have driven gold’s recent rally.
  • Market analysts believe gold could see more upside, but further growth depends on inflation trends and central bank policies.
  • MCX gold at ₹1,00,000 per 10 grams is possible, but not expected in the immediate future.

As gold prices at record high levels continue to dominate market discussions, investors should monitor global developments, monetary policy decisions, and inflation trends to predict the next move.

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