Gold prices soared to an all-time high on Tuesday, crossing the ₹1 lakh mark per 10 grams (including GST) on the Multi Commodity Exchange (MCX). June gold futures rose 1.71% to ₹98,946 per 10 grams, after hitting an intraday peak of ₹99,178. On the international front, COMEX June gold contracts also set a new record, climbing to $3,500.8 per ounce. This surge in the yellow metal comes amidst a global economic storm, intensified by a weakening US dollar, geopolitical tensions, and heightened safe-haven demand.
A key catalyst behind this rally is the escalating tug-of-war between US President Donald Trump and Federal Reserve Chair Jerome Powell. Trump’s call for pre-emptive interest rate cuts to stimulate the economy, coupled with Powell’s measured stance, has created monetary policy uncertainty and weakened investor confidence in the US dollar, which has already fallen over 4% this year. As the dollar index slips to a three-year low, gold is increasingly seen as a safer bet.
Adding to the momentum is the persistent tension between the US and China, which has driven global investors toward safe-haven assets like gold. With no concrete resolution in sight, firms like Axis Securities believe the bullish sentiment in gold is likely to persist. Additionally, China’s purchase of 29.1 metric tons of gold ETFs in just the first 11 days of April highlights how central banks are loading up on bullion as a hedge against economic uncertainty. Strong inflows into gold-backed exchange-traded funds (ETFs) and consistent buying by global institutions and central banks have only strengthened this trend.
Experts point to technical indicators that support the bullish outlook. On the COMEX, gold has support levels between $3,440 and $3,410 per ounce, with resistance near $3,480 to $3,500. In India, gold is seeing support at ₹96,750–96,200 per 10 grams, with dips towards ₹93,000 considered potential entry points for buyers. As long as COMEX gold holds above $3,250 and MCX prices stay above ₹91,000, the uptrend is expected to continue.
Despite the optimism, analysts advise caution. With gold at elevated levels, volatility could spike, especially amid ongoing geopolitical developments and economic data releases. Traders and speculators are advised to maintain low-risk positions to manage potential market swings. For now, gold’s glitter is undeniably bright, reflecting global fears, policy pressures, and an enduring desire for financial safety.
