MCX Gold reaches record highs amid a falling dollar, US-China trade tensions, and robust domestic demand.
February 5, 2025: Gold prices surged to new record levels in the domestic futures market on Wednesday, with MCX Gold April 4 contracts surpassing the ₹84,000 mark for the first time. This spike was driven by the weakening dollar, escalating US-China trade tensions, and strong domestic spot market demand.
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MCX Gold for April 4 delivery soared to an all-time high of ₹84,154 per 10 grams, surpassing the previous peak of ₹83,721. By 9:20 AM, gold was trading 0.36% higher at ₹84,098 per 10 grams.
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Global Gold Market Trends:
International gold prices also hit a record high of $2,853.97 per ounce during Wednesday’s session. The surge was fueled by geopolitical uncertainties, including Beijing’s retaliatory tariffs on US imports following new US duties on Chinese goods. This escalation in the US-China trade war has bolstered sentiment for safe-haven assets like gold.
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Reuters reported that China imposed tariffs on US imports and placed companies like Google under scrutiny for potential sanctions. Additionally, US President Donald Trump indicated no urgency to negotiate with Chinese President Xi Jinping, further heightening market uncertainty.
Expert Opinions and Trading Strategy:
“Gold and silver prices are expected to remain volatile this week due to economic and geopolitical factors,” say experts and advise traders to consider buying silver around ₹95,100 with a stop loss of ₹94,400, targeting ₹96,600.
For gold:
- Support levels: ₹83,440-₹83,100
- Resistance levels: ₹84,050-₹84,400
For international gold prices:
- Support levels: $2,854-$2,840
- Resistance levels: $2,888-$2,900
Key Drivers to Watch:
- Dollar index movements
- US Federal Reserve’s interest rate trajectory
- Developments in the US-China trade dispute
Silver prices also reflect bullish sentiment, with support levels at ₹95,000-₹94,400 and resistance at ₹96,300-₹97,000.
Tags:
GoldPriceUpdate, MCXGold, USChinaTradeWar, SafeHavenAssets, CommodityTrading, SilverPrices