More Stories

Informist, Wednesday, Apr. 16, 2025

 

--MCX June gold contract hits fresh all-time high of INR 94,919 per 10 gm 

--COMEX Jun gold contract breaches $3,300/oz, hits record high of $3,307.3 

MUMBAI – Gold futures on COMEX surged past $3,300 per ounce, a new all-time high, driven by strong safe-haven demand amid escalating trade tensions between the US and China. The yellow metal's rally was supported by a weaker dollar index and growing expectations of monetary policy easing.

 

Mirroring global trends, gold prices on Multi Commodity Exchange of India also hit fresh all-time highs on Wednesday. At 1111 IST, the most-active June gold contract was 1.5% higher at INR 94,846 per 10 grams, after touching an intraday peak of INR 94,919 per 10 grams earlier in the day. On the COMEX, the same contract was up 2% at $3,306.7 per ounce, after hitting a record high of $3,307.3 per ounce earlier in the day.

 

Although the US initially announced that electronic goods would be exempt from tariffs on Chinese imports, President Donald Trump later clarified that these items were merely being shifted to a different tariff 'bucket'. The temporary relief was short-lived, as tensions in the US-China trade war intensified. On Tuesday, China instructed its domestic airlines to suspend deliveries of Boeing jets. In response, Trump urged Beijing to initiate talks to begin negotiations aimed at easing the growing trade conflict, Bloomberg reported.

 

Manoj Jain, director at Prithvi Finmart, said gold prices are likely to see INR 100,000 per 10 grams on the MCX even before June due to the ongoing uncertainties and higher exchange-traded fund demand. "Our take on the gold prices are bullish and as per technical study after crossing $3,220 (per ounce on COMEX) levels, gold prices entered into new price territory and technically it can test $4,890 by end of 2030 and around INR 150,000 per 10 grams in the domestic markets," he said.    

 

For the rest of the session, resistance for the MCX June contract is seen at INR 96,500 per 10 grams and support at INR 92,800 per 10 grams and for for COMEX, Jain sees resistance at $3,450 per ounce and support at $3,200 per ounce. 

 

Thu Lan Nguyen, head of FX and commodity research, Commerzbank Research, said in a note, "The short-term monetary policy outlook is providing further support. The European Central Bank is generally expected to cut interest rates this week and in view of the uncertainty triggered by US tariff policy, it will certainly keep the door open to further easing."

 

The market also expects the US Federal Reserve to cut rates in June, but fear about inflation risks and an economic slowdown persist. "Minneapolis Fed President Neel Kashkari has recently been rather cautious in this regard. He saw no need to lower interest rates as a precautionary measure. If other Fed representatives, above all Fed Chair Powell, make similar statements in the coming days, this could take the wind out of the sails of the gold price rally," Nguyen added.  End

 

US$1 = INR 85.65

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

 

Reported by J. Navya Sruthi

Edited by Subhojit Sarkar

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.