MCX gold nears ₹88,400 per 10 gm as Trump’s fresh tariffs on China spark economic worries. Analysts suggest bullish momentum may continue with US Fed rate cut hopes.
April 9, 2025: Gold prices jumped sharply on Wednesday as investors turned to safe-haven assets amid rising concerns of a global recession. This comes on the heels of US President Donald Trump’s latest tariff strike on China, reigniting economic uncertainty and trade war jitters.
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On the Multi Commodity Exchange (MCX), gold opened with an upside gap at ₹87,998 per 10 grams and quickly soared to an intraday high of ₹88,396. In global markets, COMEX gold traded at $3,021 per ounce, while spot gold hovered around $3,008 per ounce.
Why Gold Is Rallying
According to HDFC Securities, gold’s rally is fueled by the fear of recession and the search for safe assets. “The US-China trade tensions, especially after the imposition of a 104% tariff on Chinese imports, have pushed investors toward gold, a traditionally stable asset during times of uncertainty.”
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It was also pointed out that a weaker US dollar is enhancing gold’s appeal globally.
US Fed Rate Cut Buzz
Senior Research Analysts believe that despite recent dips, the outlook for gold remains bullish. “The possibility of the US Federal Reserve slashing interest rates to support slowing growth is adding fuel to gold’s rally.”
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Further, “A breakout above $3,055 could see gold heading toward $3,100 or even $3,130, while sustained dips below $3,000 may test $2,950–$2,930 support levels.”
Trump’s Tariff Fallout
Trump’s reciprocal tariff policy, which took effect from 12:01 a.m. ET Wednesday, has deepened fears of a prolonged trade conflict. Investors are hedging against market volatility, making gold a preferred asset in their portfolios.
With gold already up for the day and inflation worries mounting, traders are keenly watching US monetary policy decisions and global market reactions.
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