Gold Reaches Record High of Rs 96,805, Approaching Rs 1 Lakh
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Synopsis
On April 21, gold prices in India hit a new record high of Rs 96,805 per 10 grams amid growing global trade tensions and a declining US dollar. This trend reflects international gold price movements, with significant buying interest from investors seeking safe-haven assets.
Key Takeaways
- Gold prices reached a new high of Rs 96,805 per 10 grams.
- Global trade tensions and a weak US dollar are fueling demand.
- Spot gold prices also surged internationally, hitting $3,384 per ounce.
- Support levels for gold are at Rs 95,550 and Rs 94,200.
- Traders are monitoring ongoing trade negotiations.
New Delhi, April 21 (NationPress) Gold prices in India soared to a remarkable new peak of Rs 96,805 per 10 grams on the Multi Commodity Exchange (MCX) on Monday. This surge was driven by increasing anxieties over a global trade conflict and the weakening of the US dollar, prompting investors to flock to the yellow metal.
As of around 1:30 pm, the 'MCX Gold June 5' contract was trading 1.65 percent higher at Rs 96,830 per 10 grams.
Spot gold prices in India also witnessed a significant increase. According to the India Bullion and Jewellers Association (IBJA), the fine gold (999 purity) was valued at Rs 9,659 per gram, with 22-carat gold priced at Rs 9,427.
The prices for 20-carat and 18-carat gold were noted at Rs 8,596 and Rs 7,824 per gram, respectively.
This sharp increase in domestic prices reflected international trends, where spot gold also achieved a new all-time high of $3,384 per ounce.
Global investors are increasingly seeking safe-haven assets amid escalating tensions between the United States and China.
Another contributing factor to the rise in gold prices is the depreciation of the US dollar. The dollar index has hit a three-year low, making gold more appealing to investors holding various currencies.
Since gold is priced in dollars, a weaker dollar makes it less expensive for buyers in other nations, thereby enhancing its demand.
In the previous trading session, MCX gold had decreased by 0.44 percent to Rs 95,239 per 10 grams due to profit-taking.
However, ongoing concerns about a potential extended trade war have triggered renewed buying at lower price levels.
“Gold prices have sustained their positive momentum and have briefly surpassed $3,400 per ounce. The uncertainty surrounding trade tariffs, a weaker US dollar, and rising US bond yields are keeping precious metal prices robust,” stated Pranav Mer of JM Financial Services Limited.
He further emphasized that buying interest from exchange-traded funds (ETFs) and anticipated festive demand in India are also supporting gold prices.
“Traders will be closely monitoring the ongoing trade discussions between the US and its key partners, including Japan, the Eurozone, and China, which could provide more clarity on market direction,” Mer added.
From a technical standpoint, gold prices currently find support at Rs 95,550 and then at Rs 94,200, while the next resistance levels are identified at Rs 97,580 and Rs 98,200, according to Mer.
