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Informist, Friday, Apr. 11, 2025

 

MUMBAI – Futures contracts of gold on COMEX hit a fresh all-time high in early Asian trade on Friday due to safe-haven demand amid ongoing trade tensions globally. The trade war between the US and China and a lower Dollar Index also supported prices of the yellow metal.  

 

US President Donald Trump raised tariffs on China to 125% on Thursday, after Beijing hit back by imposing 84% tariffs on the US on Wednesday. The White House later clarified that Trump's new tariff on China totalled 145%, not the 125% initially reported.

 

Further, US inflation data released Thursday also supported a rise in gold prices. Consumer price inflation eased more than expected in March, with the 12-month inflation rate at 2.4%, down from 2.8% in February. Core inflation, which excluded energy and food, was at 2.8% in March on an annual basis.  

 

This weighed on the Dollar Index amid expectations of more rate cuts by the US Federal Reserve. A cooler US March inflation reading released overnight may support further rise in gold as it could boost prospects of more rate cuts by the Fed, Dow Jones quoted GivTrade's Hassan Fawaz as saying in an email.

 

At 0815 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was at 100.23, nearly 0.7% lower than its previous close. A weaker greenback makes dollar-denominated commodities such as gold cheaper for holders of other currencies. 

 

Since the time US President Trump announced tariffs on US imports on Apr. 2, gold prices have risen 2.4% to the new record high of $3,241.5 per ounce on Friday. At 0815 IST, the most-active June gold contract was up 1.9% at $3,236.8 per ounce.

 

On the domestic exchange, gold prices rose to a record high of INR 92,400 per 10 gm on Thursday, up nearly 3% from the previous close. On Thursday, the most-active June contract on the Multi Commodity Exchange of India closed at INR 92,033 per 10 gm, up 2.5% from the previous close. 

 

According to Kedia Advisory, gold prices are seen at INR 90,290-INR 93,270 per 10 gm on Friday. The brokerage firm sees support at INR 91,160 per 10 gm, with further downside at INR 90,290 per 10 gm, while resistence is seen at INR 92,650 per 10 gm and a break above this might drive prices to INR 93,270 per 10 gm.  End

 

US$1 = INR 86.69

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by J. Navya Sruthi

Edited by Avishek Dutta

 

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