Gold Price Hits New High, Rs 8,600 Away From Rs 1,00,000 Mark: What Is Impacting And What To Expect?

Gold prices in India continued to skyrocket to fresh heights as investors' concern over trade tensions and economic slowdown due to Trump's upcoming tariff implementation on April 2, heightened. MCX gold price touched its new all-time high of Rs 91,400 per 10 grams, while 24K gold price is above Rs 92,000 per 10 grams. Silver prices also followed the bullish trend, however, traded near its peak levels. Gold and silver prices are expected to rise ahead.

MCX Gold, Silver Prices:

MCX gold price, with April 30th expiry date, jumped by as much as Rs 683 to hit new historic high of Rs 91,400 per 10 grams, compared to last week's ending of Rs 90,717 per 10 grams.

Meanwhile, MCX silver prices, with April 30th expiry, traded at Rs 1,00,600 per 1kg up by 0.6% after hitting an intraday high of Rs 1,00,900 per 1kg. MCX silver's all-time high is of Rs 1,04,108 per 1kg.

From the latest record high level, MCX gold is just Rs 8,600 from hitting Rs 1,00,000 mark for the first time. Chances of gold price at Rs 1 lakh is high in April due to global uncertainties.

Gold Prices In India:

At the retail stores, the 24K gold price is at Rs 92,840 per 10 grams, while 22K and 18K gold prices are at Rs 85,100 and Rs 69,630 per 10 grams.

Gold price in India is highest compared to other countries. For instance, 24K gold price is at Rs 90,890 per 10 grams in Australia, at Rs 85,910 per 10 grams in Canada, at Rs 86,570 per 10 grams in England, and at Rs 85,890 per 10 grams in USA.

What Is Impacting Gold And What To Expect?

As per Anuj Gupta, Research Analyst at HDFC Securities, so far this year, Gold has delivered more than a 17.0% return. The gold rally is being driven by factors such as strong safe haven demand due to the fear of an escalating global trade war and its implications for economic development. In addition, strong central bank buying and robust ETF inflow have also contributed to gold's impressive rally.

He added, "The Trump administration's scheduled implementation of reciprocal tariffs on April 2 is a crucial event for this week. It is the focus of attention among the market participants, and until then we believe risk premiums build on gold prices."

For the current week, SMC Global Securities weekly outlook report said, gold prices surged to a record high, driven by risk aversion amid escalating trade tensions ahead of additional U.S. tariffs. President Donald Trump's announcement of 25% tariffs on foreign-made cars and auto parts has triggered retaliation threats from the European Union and Canada, raising fears of a broader trade dispute and global economic slowdown. Strong central bank inflows and rising ETF demand have further supported gold's rally. The metal posted its fourth consecutive weekly gain and its largest monthly rise since March 2024. Market uncertainty, potential interest rate cuts, geopolitical conflicts, and central bank buying continue to fuel gold's surge in 2025. Canadian Prime Minister Mark Carney warned of retaliatory trade actions if the U.S. proceeds with new auto tariffs, intensifying concerns over a global trade war.

SMC's note added, investors are also watching the reciprocal tariffs set for April 2, which could stoke inflation, slow economic growth, and escalate trade disputes. Governments from Ottawa to Paris threatened retaliation after Trump unveiled a 25% tariff on imported vehicles, set to come into effect the day after he plans to announce reciprocal tariffs, aimed at the countries he says are responsible for the bulk of the U.S. trade deficit. The Fed held rates steady last week but reaffirmed its stance on two rate cuts by year-end. Richmond Fed President Tom Barkin maintained that the Fed's "moderately restrictive" policy remains appropriate given economic uncertainties.