Gold Prices Cross Rs 95,000 For First Time Ever: Why Is Yellow Metal Surging? – News18
Last Updated:
On the Multi Commodity Exchange (MCX), gold futures surged to a new all-time high of Rs 95,090 per 10 grams before pulling back to around Rs 95,000, up 1.66 per cent by 1:04 pm.
Gold has hit its fresh record high.
Gold prices in India soared to historic levels on April 16, breaching the Rs 95,000 mark for the first time ever in the domestic futures market. On the Multi Commodity Exchange (MCX), gold futures surged to a new all-time high of Rs 95,090 per 10 grams before pulling back to around Rs 95,000, up 1.66 per cent by 1:04 pm.
Silver too mirrored the upward trend, climbing 1.56% to Rs 96,253 per kilogram, after briefly touching an intraday high of Rs 96,344.
According to experts, the rally in gold has been fuelled by a combination of factors including global economic uncertainties amid tariff war, a weakening US dollar, and safe-haven demand from investors.
Why Are Gold Prices Increasing?
1. Weakening Dollar
The US dollar index fell by 0.5%, making gold more attractive to investors holding other currencies. A weaker dollar often pushes up gold prices, as the metal becomes cheaper for foreign investors.
2. Global Economic and Geopolitical Uncertainty
Investor sentiment remains cautious due to ongoing concerns about global economic growth and geopolitical tensions. Uncertainties surrounding US President Donald Trump’s trade war rhetoric have further fuelled risk aversion. In such scenarios, gold, a traditional safe-haven asset, tends to shine.
“Gold prices have surged to an all-time high today, fuelled by a lower dollar, trade war tensions, and concerns about global economic growth as a result of US President Donald Trump’s tariff plans, which prompted safe-haven inflows,” Renisha Chainani, head of research at Augmont, said.
On Tuesday, President Trump ordered a probe into potential duties on all vital mineral imports, signalling a tougher stance on trade and potentially influencing relations with important suppliers, notably China.
In the latest development, the US has raised tariffs on Chinese imports into America to a total of 245% “as a result of its retaliatory tariffs”, according to a White House Fact Sheet.
3. Record International Prices
In the global market, spot gold rose 1.7% to $3,282.88 an ounce as of early morning trading, after touching a new high of $3,290.10. US gold futures were also up 1.8% at $3,299.60 per ounce.
4. Strong Investment Demand
Gold-backed exchange-traded funds (ETFs) have seen steady inflows as investors seek refuge in bullion. Central banks are also continuing to accumulate gold, further tightening supply.
“Investment demand continues to strengthen, with data from the World Gold Council showing that Chinese gold ETFs recorded robust inflows, rising by 29.1 metric tons in the first 11 days of April alone. This figure has already surpassed total Q1 inflows and is outpacing flows into US-listed gold funds,” said Kaynat Chainwala, assistant vice-president (commodity research) of Kotak Securities.
5. Bullish Forecasts from Global Banks:
Leading financial institutions have projected further upside for gold. Goldman Sachs expects gold to hit $4,000 an ounce by mid-2026, citing persistent uncertainty and robust demand.
According Augmont, increasing chances of a deeper recession, another turn in the geopolitical landscape, disruptions in global supply chains, and fears of increasing inflation coupled with a changing rate outlook suggest that gold will maintain its strong position in the near future.
“As the gold active Jun contract has sustained above $3245, is expected to continue its bullish momentum to touch $3300 (~Rs 95000) and $3320 (~Rs 95500) going ahead,” Augmont added in its note.
Silver after achieving the target of $32 (~Rs 94000), we are likely to see this rally extending further towards $33 (Rs 95500) and beyond this week, it said.
What About Other Precious Metals?
Silver also gained ground in the global market, with spot prices rising 0.5% to $32.45 an ounce. Meanwhile, platinum fell 0.3% to $956.80, and palladium remained flat at $971.24.