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Informist, Wednesday, Apr. 16, 2025

 

--MCX Jun gold contract tops INR 95,000/10 gm, hits record high of INR 95,435

--COMEX June gold contract scales new record high of $3,334.2 per ounce

 

MUMBAI – Gold futures on the Multi Commodity Exchange of India surged past INR 95,000 per 10 grams for the first time ever Wednesday, taking a cue from COMEX as escalating trade tensions between the US and China boosted the safe-haven appeal of the precious metal. A weaker dollar index, rising expectations of monetary policy easing, and firm Chinese demand in gold exchange-traded funds underpinned the rally in gold prices.

 

At 1520 IST, the most-active June gold contract was 1.8% higher at INR 95,095 per 10 grams, having touched an intraday peak of INR 95,435 per 10 grams earlier in the day. On COMEX, the same contract was up 2.6% at $3,323.2 per ounce, after hitting a record high of $3,334.2 per ounce earlier in the day.

 

The US announced that China now faces up to 245% tariff on exports to the US as a result of Beijing's retaliation on reciprocal tariffs imposed by President Donald Trump to address "unfair trade practices". The White House released a factsheet stating that China faces up to 245% tariff, escalating the trade war between the world's two largest economies. However, the list of goods to be affected by the tariff was not disclosed in the factsheet. The move came in retaliation to aggressive actions by Beijing as it instructed its domestic airlines to stop taking deliveries of Boeing jets.

 

"Trump's tariff reversals and threats of future levies, alongside China's retaliatory 125% tariffs, fuelled investor anxiety. A weakening dollar and Fed rate cut bets further supported gold's rally," Kedia Advisory said in a note. At 1533 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.6% at 99.54. A weaker dollar makes commodities such as gold, which are priced in the greenback, cheaper for buyers holding other currencies, hence aiding demand.

 

Manoj Jain, director at Prithvi Finmart, said the resistance for the MCX June contract for the day is at INR 96,500 per 10 grams and support at INR 92,800 per 10 grams. On COMEX, Jain sees resistance at $3,450 per ounce and support at $3,200 per ounce.

 

Moreover, "support (for gold prices) was also coming from buying in China, where gold-backed ETFs are finding favour", Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

 

China's gold exchange-traded funds witnessed inflows of $772 million in March. The Jan-Mar quarter saw inflows equivalent to 23 tonnes, or $2.3 billion, reaching record levels, per a World Gold Council report.  End

 

US$1 = INR 85.67

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

 

Reported by Ashutosh Pati

Edited by Rajeev Pai

 

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