Gold prices hit record high today: Here we decode why
What's the story
Gold prices hit an all-time high today, with spot gold touching $2,945 per ounce. In India, the price of gold futures on the Multi Commodity Exchange (MCX) also witnessed a sharp spike of ₹61, settling at ₹86,174 per 10g. The surge in gold prices can largely be attributed to its strong appeal as a safe-haven asset amid global uncertainty.
Influences
Market factors influencing gold's value
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, explained that the ongoing global uncertainty and tariff concerns have strengthened gold's position as a reliable investment. Traders are also building new positions ahead of key events that could affect future price movements.
Market anticipation
Anticipated events and their impact on gold prices
The market is closely watching the upcoming Federal Reserve and RBI's Meeting Minutes. These events are expected to significantly influence the gold prices both India and abroad. Analysts predict that gold prices will continue to fluctuate in the near term, with MCX trading projected within the ₹84,500-₹87,500 per 10g range.
Investment outlook
Price levels to look out for
Despite possible short-term corrections, analysts are of the opinion that strong fundamental demand will keep the long-term bullish sentiment for gold intact. They recommend investors to keep a close watch on the $2,890-$2,970 per ounce range in the short term. For Indian investors, the important levels to watch are ₹85,850-₹86,640 per 10g. These ranges are likely to provide important trading cues in the coming days.