Mumbai: Gold prices surged to unprecedented levels on Monday, driven by escalating fears of a global trade war and a depreciating rupee. The price of the yellow metal touched approximately Rs 84,500 per 10 grams on the Multi Commodity Exchange (MCX), marking an all-time high in the Indian market. In Mumbai’s physical bullion market, gold was trading at around Rs 82,500 per 10 grams, further underlining the soaring trend.

The sharp rise in gold prices comes against the backdrop of ongoing economic uncertainties, fueled by protectionist policies from the United States. Since Donald Trump took office as U.S. President, threats of imposing tariffs on some of the country’s key trading partners have intensified, leading to volatility in global markets. As investors seek safe-haven assets in response to these concerns, gold has witnessed a consistent upward trajectory.
“The weakening of the Indian rupee against the U.S. dollar has also played a crucial role in pushing up domestic gold prices. With import costs rising, local prices have surged significantly,” said a bullion trader in Mumbai. The rupee has faced pressure due to geopolitical tensions and changing global economic dynamics, further compounding inflationary concerns in commodity markets.
Market analysts suggest that the ongoing trade tensions and currency fluctuations could sustain gold’s bullish trend in the near future. “Until there is a clear resolution in the U.S. trade policies and stability in currency markets, gold is likely to remain a preferred investment option for risk-averse investors,” said a senior commodities analyst.
The historic rise in gold prices has sparked mixed reactions among market participants. While investors holding gold see this as an opportunity for significant gains, jewelry buyers and retailers are facing challenges due to higher costs, particularly with the wedding and festive seasons approaching.
As global economic tensions continue to unfold, all eyes remain on further developments in U.S. trade policies and the movement of the rupee, both of which could determine the trajectory of gold prices in India.
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