Gold Prices May Reach Rs 1 Lakh Amid Tariff Concerns and Economic Fears
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Synopsis
Gold prices in India are expected to approach Rs 1 lakh per 10 grams due to global uncertainties and the impact of Trump’s tariffs, according to experts. As fears of a US economic slowdown grow, investors are increasingly drawn to gold as a safe-haven asset.
Key Takeaways
- Gold prices may reach Rs 1 lakh per 10 grams due to global uncertainties.
- Goldman Sachs predicts prices could hit $3,700 to $4,500 per ounce.
- Gold has provided 110% returns over the past five years.
- Safe-haven demand is rising amid trade war fears.
- Experts suggest viewing price corrections as buying opportunities.
New Delhi, April 19 (NationPress) Gold prices in India are poised to approach Rs 1 lakh per 10 grams, as ongoing global uncertainties are leading investors to seek safe-haven assets, according to experts on Saturday.
The significant escalation in gold prices is attributed to concerns over a potential slowdown in the US economy, exacerbated by President Donald Trump’s renewed tariff strategies.
Global brokerage Goldman Sachs forecasts that gold prices might soar to $3,700 per ounce in the near future and could even reach $4,500 per ounce if trade tensions further intensify.
If these predictions materialize, domestic gold prices on the Multi Commodity Exchange (MCX) could surge to Rs 1 lakh or possibly Rs 1.25 lakh per 10 grams, say market analysts.
Gold has already provided substantial returns for investors, with prices increasing over 110 percent in the last five years, rising from Rs 44,906 per 10 grams on April 17, 2020, to Rs 95,239 per 10 grams on April 17.
Year-to-date (YTD), prices have escalated by nearly 25 percent.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, stated that gold prices are currently experiencing a rally due to fears surrounding the trade war and recession in the US.
“The demand for safe-haven assets has surged as investors are concerned about the economic ramifications of Trump’s tariffs. US Fed Chair Jerome Powell noted that a one percent increase in tariffs could lower US economic growth by 0.10 percent,” Gupta explained.
Despite the recent stock market gains, experts believe there is still potential for gold to rise. Gupta indicated that the factors bolstering gold—including geopolitical tensions and inflation—remain in play.
“Any downturn in gold prices should be perceived as a buying opportunity,” he added.
Navneet Damani, Group Senior Vice President at Motilal Oswal, expressed a positive outlook for gold.
“Ongoing trade tensions, inflationary pressures, and central bank gold acquisitions will continue to underpin prices,” he stated.
Damani anticipates support for gold at Rs 91,000 and resistance near Rs 99,000 in the short term. He also recommended that investors employ a ‘buy on dips’ strategy, emphasizing that gold will remain appealing as long as global policy uncertainties and trade issues persist.
