New Delhi: Gold rates in India in the national capital, Delhi, were boosted on the second consecutive day, above ₹91K per 10 grammes. The increase in gold prices, which inevitably reflects a downward trend, can be attributed to global factors such as Donald Trump’s recent announcements about his auto tariffs. This, he claims, has instilled fear in naive investors, leading them to abandon a stable investment such as gold. Increased geopolitical tensions are similarly contributing to higher prices. And analysts caution that if the trend continues, gold could soon smash its prior record.
The All India Sarafa Association said that the gold price of 99.9% purity went up by ₹365 on Thursday to ₹91,050 per 10 grams, as compared to ₹90,685 per 10 grams a day before. Besides, the price of 24K purity gold also moved upwards by ₹365 to ₹90,600 per 10 grams as against ₹90,235 per 10 grams. That translates into a total rise of ₹600 in two consecutive days. In the National Capital Region, silver gained ₹200 from Wednesday to now stand at ₹1,01,700 per kilogram.
Gold prices soared on March 10, as April gold futures on the Multi Commodity Exchange (MCX) surged by ₹828, or 0.94 percent, to ₹88,466 per 10 grams — just shy of the all-time high. Gold had peaked just a week ago, on 20 March at ₹89,796 per 10 grams. Internationally, spot gold rose by $34.77, or 1.15%, to $3,054.05 per ounce, nearly the historic peak. When Comex gold futures for April delivery jumped to an all-time peak of $3,094.85 an ounce in Asian markets.
Analysts from HDFC Securities, including Senior Analyst Saumil Gandhi, explain that Trump tariff threats have increased global risk appetite post-Wednesday, thereby enhancing the attractiveness of gold. Prices have been pushed towards $3,050 an ounce as of 0325 hours IST due to weak US GDP data and anticipated US tariff retaliations by 2nd April 2018, Jatin Trivedi from LKP Securities said. Investors are turning to gold because it is considered a safe haven amid rising concerns in the markets due to new trade threats from the U.S. aimed at the Eurozone and Canada, which are adding to market jitters.
Talk to people. Expected uncertainties regarding Trump’s policies are likely to persist. Chintan Mehta, CEO of Abans Financial Services Central banks around the globe are building gold reserves as a safeguard against worries over the economic and geopolitical backdrop, he said, which continues to provide solid support to demand. As global tensions and uncertainty intensify, gold remains a highly reliable investment option to potentially balance your portfolio. Next, attention shifted to Friday’s U.S. Personal Consumption Expenditure (PCE) data, a critical guidepost to Fed policy. Investors are also listening for signs about future monetary policies from speeches this week by Federal Reserve officials.
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