Fresh High
MCX, COMEX gold hits new all-time high on safe-haven appeal, weak dollar
This story was originally published at 19:19 IST on 5 February 2025
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--MCX April gold contract scales new lifetime high of INR 84,767 per 10 gm
--COMEX April gold contract hits fresh all-time high of $2,901.5 an oz
MUMBAI – Gold contracts on the Multi Commodity Exchange of India and COMEX touched a new lifetime high on Wednesday as rising prospects of a trade war between the US and China boosted the appeal for safe-haven assets.
On Tuesday, China announced retaliatory tariffs against imports from the US, after the latter imposed 10% tariffs on Chinese goods. The ongoing tiff between the world's largest and second-largest economies raised concerns about a global trade war and a slowdown in growth.
"Gold prices have soared to an all-time high due to the global uncertainty sparked by the tariff war initiated by (US President Donald) Trump and followed by China. This ongoing uncertainty is expected to drive gold prices towards greater volatility, as any instability in the global economy tends to push gold prices even higher," Avinash Gupta, vice chairman of All India Gem and Jewellery Domestic Council, said.
A weaker dollar index also supported gold prices. At 1848 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.5% at 107.48 because of a slowdown in the US job market. A weaker greenback makes dollar-denominated precious commodities cheaper for those holding other currencies, thus improving demand. The US Bureau of Labor Statistics on Tuesday reported that job openings in the country fell to 7.6 million in December from 8.1 million in November.
At 1850 IST, the most active April gold contract on the MCX was up 0.8% at INR 84,486 per 10 grams, after hitting a fresh lifetime high of INR 84,767 per 10 gm. The most active April gold contract on COMEX was up 0.7% at $2,895 per ounce. The contract hit a new lifetime high of $2,901.5 per ounce earlier Wednesday. End
US$1 = INR 87.47
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by J. Navya Sruthi and Sandeep Sinha
Edited by Saji George Titus
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