Gold costs hit document excessive for third straight day on MCX; spot gold tops $3,000 on safe-haven demand

Gold worth at present: Sustaining its upward run for the third straight day, gold costs touched one other peak on the Multi Commodity Trade (MCX) in at present’s buying and selling session, March 14. The April expiry contract opened greater at ₹87,781 per 10 grams and strengthened additional to hit a recent peak of ₹88,280, marking a 0.57% soar from the earlier closing worth.

In the meantime, spot gold costs surpassed $3,000 per ounce for the primary time earlier at present, reaching a recent all-time excessive of $3,004. Up to now this 12 months, spot costs have already climbed 14.20% after ending the earlier calendar 12 months with a 27.24% acquire.

Indian inventory markets remained closed at present in observance of Holi. Nevertheless, commodity markets opened for the night session at 5 PM. 

Gold costs have been hitting document highs this 12 months, largely pushed by considerations over a possible international financial fallout stemming from Donald Trump’s commerce insurance policies, prompting buyers to flee from dangerous property towards safer havens, fueling a sustained rally in gold.

Moreover, gold accumulation by main central banks, significantly China, which prolonged its purchases for a fourth consecutive month in February, is supporting the metallic’s rally. Moreover, costs are drawing extra assist from greenback weak spot beneath 103.75 amid softer-than-expected CPI knowledge, which strengthened expectations of rate of interest cuts in each the U.S. and India.

Furthermore, fears are additionally mounting that the Trump administration may impose duties on gold imports, prompting among the largest banks within the U.S. to move gold bars from London to New York Metropolis on business flights, as per the latest reviews. 

Amid the sustained rally, the yellow metallic can also be surpassing analysts’ goal worth sooner than anticipated, prompting them to revise their projections greater. International brokerage agency Macquarie just lately up to date its 2025 gold worth forecast and now expects the dear metallic to achieve $3,500 an oz by the third quarter.

It acknowledged that gold stays a key safe-haven asset, because the financial institution’s economists anticipate international financial development to say no to 0.3% by the third quarter of this 12 months.

Threat-off sentiment grows

Within the newest salvo, Trump threatened to impose 200 per cent tariffs on wine, champagne, and different alcoholic drinks from European Union international locations in retaliation towards the bloc’s deliberate levies on American-made whiskey and different merchandise.

The EU’s tariffs had been introduced in retaliation to Trump’s levies on metal and aluminum. The president mentioned he wouldn’t row again on the metals duties, nor on plans for sweeping reciprocal tariffs on international locations worldwide which can be as a result of kick in as quickly as April 2.

Analysts have warned that markets are being wracked by uncertainty amid fears the rising commerce warfare between main international economies may reignite inflation. Wall Avenue has been hammered, with the S&P 500 slipping right into a correction Thursday, having fallen greater than 10 per cent from its latest peak—a document excessive touched simply final month.

Analysts count on MCX gold worth to the touch ₹92,000

Ajay Kedia, Director of Kedia Advisory, expects gold costs on MCX to achieve ₹92,000 in 2025, pushed by document central financial institution purchases, a weakening U.S. greenback, and Federal Reserve charge cuts. A worldwide commerce warfare and inflation considerations are additionally prone to maintain bullish momentum.

Nevertheless, he famous that excessive volatility is predicted, as a decision of commerce tensions, stronger financial knowledge, or a Fed pause on charge cuts may set off sharp corrections.

“Gold’s historic tendency to appropriate when all elements flip bullish means that sudden market shifts may trigger worth swings of ₹6,000- ₹7,000 per 10 grams earlier than reaching new highs,” he additional added.

Disclaimer: The views and suggestions given on this article are these of particular person analysts. These don’t characterize the views of Mint. We advise buyers to examine with licensed specialists earlier than taking any funding choices.