Gold prices on Monday surged to new record highs in the domestic futures market as uncertainty over the US President Donald Trump’s tariff policies increased demand for the yellow metal as a safe-haven investment.
According to the India Bullion and Jewellers Association, the price of 24-carat gold was Rs 8,537 per gram, while 22-carat gold was Rs 8,332 per gram.
On the Multi Commodity Exchange (MCX), gold futures for April 4 expiry touched an all-time high of Rs 85,384 per 10 grams in early trade.
The same contract was trading 0.51 per cent higher at Rs 85,325 per 10 grams.
In the international market, gold prices also remained near record levels due to growing fears of a global trade war. Last week, spot gold reached a new peak of $2,886.62 per ounce.
The uncertainty surrounding Trump’s latest trade decisions has pushed investors towards gold, which is traditionally considered a safe investment during times of economic and geopolitical instability.
Trump plans to impose a 25 per cent tariff on all steel and aluminum imports into the US.
He was expected to make a formal announcement later on Monday (US time). Trump may introduce additional tariffs on several countries.
The trade policies have raised concerns about inflation in the US, which could prevent the Federal Reserve from cutting interest rates in the near future.
Meanwhile, the gold reserves in India went up by $1.242 billion to $70.893 billion in the previous week, according to the Reserve Bank of India (RBI) data.
The apex bank said that the Special Drawing Rights (SDRs) were also up by $29 million to $17.889 billion.
Meanwhile, the rupee opened at a record low with falling by 49 paise to 87.92 against the US dollar on Monday, compared to its closing value of 87.43 on Friday.
(IANS)
