Synopsis
On March 13, gold prices in New Delhi surged to an all-time high of Rs 86,875 per 10 grams, driven by global uncertainties and lower inflation rates in the US. Experts attribute this rise to ongoing trade tensions and increased demand for gold as a safe-haven asset.Key Takeaways
- Gold prices hit an all-time high
- 24-carat gold reached Rs 86,875 per 10 grams
- Global instability drives demand for gold
- US inflation fell to 2.8 percent
- Strong inflows into gold ETFs boost market sentiment
New Delhi, March 13 (NationPress) On Thursday, gold prices surged to an unprecedented peak amidst ongoing market volatility.
On the Multi Commodity Exchange (MCX), the futures for 24-carat gold for April delivery increased by 0.21 percent, reaching Rs 86,875 per 10 grams.
This spike in gold prices is primarily attributed to global turmoil. The unpredictability surrounding US President Donald Trump’s tariff strategies has prompted investors to view gold as a safe-haven asset.
Consequently, international gold prices soared to $2,945 per ounce on March 13.
As per the Indian Bullion Jewellers Association (IBJA), the spot price for 24-carat gold in India was Rs 86,670 per 10 grams, while 22-carat gold was priced at Rs 84,590 per 10 grams.
The rates for 20-carat, 18-carat, and 14-carat gold were Rs 77,140, Rs 70,200, and Rs 55,900 per 10 grams, respectively.
Experts are of the opinion that the persistent trade conflicts and tariff uncertainties are steering investors towards gold.
Moreover, a decrease in US inflation is bolstering gold prices. Diminished inflation raises the probability of interest rate reductions, which further enhances the appeal of gold.
Recent statistics from the US indicated inflation at 2.8 percent, lower than the anticipated 3 percent. Analysts predict that this inflation data will impact gold prices in the forthcoming weeks.
Jatin Trivedi, a commodity and currency research analyst at LKP Securities, remarked that the repercussions of these inflation figures will also be mirrored in the US Federal Reserve’s interest rate policy.
In addition, substantial investments into gold exchange-traded funds (ETFs) are also fostering a bullish outlook in the market.
Concerns regarding trade wars have further intensified the gold rally. Earlier this month, President Trump enforced a 20 percent tariff on Chinese goods and a 25 percent tariff on imports from Mexico and Canada.
Such actions have heightened apprehensions about global economic stability, making gold a favored option for investors.
