Gold prices at record high as investors seek safety amid trade war concerns
Gold prices on Monday surged to new record highs in the domestic futures market as uncertainty over the US President Donald Trump’s tariff policies increased demand
- NEW DELHI — Gold prices on Monday surged to new record highs in the domestic
futures market as uncertainty over the US President Donald Trump’s tariff
policies increased demand for the yellow metal as a safe-haven investment.
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- According to the India Bullion and Jewellers Association,
the price of 24-carat gold was Rs 8,537 per gram, while 22-carat gold was Rs
8,332 per gram.
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- On the Multi Commodity Exchange (MCX), gold futures for
April 4 expiry touched an all-time high of Rs 85,384 per 10 grams in early
trade.
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- The same contract was trading 0.51 per cent higher at Rs
85,325 per 10 grams.
-
- In the international market, gold prices also remained near
record levels due to growing fears of a global trade war. Last week, spot gold
reached a new peak of $2,886.62 per ounce.
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- The uncertainty surrounding Trump's latest trade decisions
has pushed investors towards gold, which is traditionally considered a safe
investment during times of economic and geopolitical instability.
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- Trump plans to impose a 25 per cent tariff on all steel and
aluminum imports into the US.
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- He was expected to make a formal announcement later on
Monday (US time). Trump may introduce additional tariffs on several countries.
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- The trade policies have raised concerns about inflation in
the US, which could prevent the Federal Reserve from cutting interest rates in
the near future.
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- Meanwhile, the gold reserves in India went up by $1.242
billion to $70.893 billion in the previous week, according to the Reserve Bank
of India (RBI) data.
-
- The apex bank said that the Special Drawing Rights (SDRs)
were also up by $29 million to $17.889 billion.
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- Meanwhile, the rupee opened at a record low with falling by
49 paise to 87.92 against the US dollar on Monday, compared to its closing
value of 87.43 on Friday.
