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Informist, Monday, Apr. 21, 2025

 

--COMEX June gold contract hits fresh all-time high of $3,397.6 per ounce 

--MCX June gold contract hits fresh all-time high of INR 96,747 per 10 gm

 

MUMBAI – Futures contracts of gold on COMEX hit a fresh all-time high in early Asian trade on Monday as a weak dollar index and uncertainty surrounding the global trade war led to a rise in safe-haven demand for the yellow metal. Gold prices on MCX also hit record peaks, tracking prices on the COMEX.

 

At 0932 IST, the most-active June gold contract on the COMEX was up 1.99% at $3,394.6 per ounce. Earlier in the day, it had hit a lifetime high of $3,397.6 per ounce. At 0931 IST, the most-active June gold contract on the MCX was up 1.27% at INR 96,460 per 10 grams, after touching a record high of INR 96,747 per 10 grams. 

 

The dollar index weakenend as market sentiment took a hit following the public criticism of the Federal Reserve by US President Donald Trump. Trump launched a series of attacks against Fed Chair Jerome Powell on Thursday, with his team evaluating whether they could fire Powell, a move that has great consequence for the central bank's independence, as well as for global markets. 

 

"Markets are already on edge due to escalating geopolitical tensions, and now concerns are rising that Trump's potential interference with the Fed could add another layer of uncertainty," Reuters quoted Charu Chanana, chief investment strategist at Saxo in Singapore, as saying.

 

Meanwhile, trade tensions between two of the world's largest economies, the US and China, escalated. "The lack of a clear timeline for US-China trade negotiations continues to maintain investors' cautiousness," Dow Jones quoted Hassan Fawaz, chairman and founder of GivTrade, as saying in a note. Trump said on Friday that the US was having good conversations privately with China amid a trade war between the two countries, Reuters reported. But China's ambassador to the US has said the latter should show respect before any talks can take place.

 

On Sunday, a Boeing BA jet intended for use by a Chinese airline landed back at the plane maker's US production hub, a victim of the tit-for-tat bilateral tariffs launched by Trump in his global trade offensive, the report said. On Monday, China warned countries against striking a broader economic deal with the US at its expense, a move Trump is reportedly seeking from countries seeking tariff reductions or exemptions, it said.

 

Given the global uncertainities, Goldman Sachs has raised its outlook for gold to $3,700 an ounce by the end of 2025, the third such hike this year, reports showed. In March, the investment bank had hiked its 2025 gold price target to $3,300 per ounce.  End

 

US$1 = INR 85.16

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

 

Reported by Shreya Shetty

Edited by Avishek Dutta

 

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