
New Delhi:
After the announcement of US President Donald Trump’s new reciprocal tariff, there has been a tremendous jump in gold prices. Investors turned to gold as a safe-han investment amid the decline of stock markets, making its prices to a record level.
On Wednesday, the global price of gold rose 0.29% to $ 3,133.03 an ounce. At the same time, gold futures jumped up to $ 3,189.40 an ounce. In India’s Multi Commodity Exchange (MCX), the price of gold futures was Rs 90,764 per 10 grams, which is likely to go up further in the next session.
Trump’s announcement declines in markets, increased demand for gold
Trump has announced the implementation of the reciprocal tariff on countries lending taxes on American exports. Apart from this, 25% tariffs are also being imposed on the import of vehicles and auto parts. After this decision, there was a huge decline in markets around the world, causing investors’ confidence towards gold.
How far can gold prices go?
Even before Trump’s announcement, gold prices were at a record level. Gold futures on COMEX reached $ 3,177 an ounce on Tuesday. MCX also saw a new height of Rs 91,400 per 10 grams.
Gold prices can make new records
According to some experts, if the trade war became faster and the global markets continue to decline and the trade tension increased, then gold prices can make new records. Gold can also go up to $ 3,300 an ounce in the next few months. In India too, MCX is expected to reach Rs 95,000 per 10 grams.
Why the demand for gold is increasing?
Tariff War is considered to be the safest investment option in the era of global uncertainty. Whenever there is a decline in the market, investors withdraw money from the stock market and invest in gold. This is the reason that this time the demand for gold has increased rapidly.
There is a huge movement in the markets after the tariff announcement of Donald Trump. Investors took out money from risky assets and turned to gold, causing gold prices to reach a record level. If the market volatility continues in the coming days, then the price of gold can go up further.
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