Gold Prices Reach All-Time High as Investors Turn to Safe Havens Amid Trade War Fears
Click to start listening
Synopsis
Gold prices have hit record highs in India as rising uncertainty over US tariff policies drives investors to seek safe havens. With gold futures reaching unprecedented levels, the market reacts to global trade tensions and economic instability, reflecting a growing trend in safe investment behavior.
Key Takeaways
- Gold prices surged to record highs.
- Investors are seeking safe-haven assets.
- Trump's tariff policies are causing market uncertainty.
- Gold futures on the MCX reached Rs 85,384 per 10 grams.
- India's gold reserves rose to $70.893 billion.
New Delhi, Feb 10 (NationPress) Gold prices soared to unprecedented levels in the domestic futures market on Monday as rising uncertainty regarding US President Donald Trump’s tariff policies heightened interest in the yellow metal as a safe-haven investment. According to the India Bullion and Jewellers Association, the cost of 24-carat gold was Rs 8,537 per gram, while 22-carat gold was priced at Rs 8,332 per gram.
On the Multi Commodity Exchange (MCX), gold futures for April 4 expiry reached a historic peak of Rs 85,384 per 10 grams during early trading.
This contract was trading 0.51 percent higher at Rs 85,325 per 10 grams.
In the global market, gold prices also remained near record highs, driven by increasing fears of a global trade conflict. Last week, spot gold hit a new maximum of $2,886.62 per ounce.
The ambiguity surrounding Trump’s latest trade decisions has led investors to gravitate towards gold, which is conventionally viewed as a secure investment during periods of economic and geopolitical turmoil.
Trump is set to impose a 25 percent tariff on all steel and aluminum imports into the US.
A formal announcement was anticipated later on Monday (US time), with Trump possibly introducing further tariffs on multiple countries.
These trade policies have raised apprehensions regarding inflation in the US, which may hinder the Federal Reserve from lowering interest rates soon.
Additionally, India's gold reserves increased by $1.242 billion to $70.893 billion in the past week, as per data from the Reserve Bank of India (RBI).
The central bank also reported that Special Drawing Rights (SDRs) rose by $29 million to $17.889 billion.
Meanwhile, the rupee opened at an all-time low, declining by 49 paise to 87.92 against the US dollar on Monday, compared to a closing value of 87.43 on Friday.
