Gold price reclaims ₹86,000 mark, inches closer to record high. Can it climb to a new peak?

Gold prices reclaimed the ₹86,000 per 10 grams mark on the MCX in intraday trade on Tuesday, March 4, amid mounting concerns of a major global trade war as US President Donald Trump's new tariffs on Canada and Mexico went effective.

MCX Gold for April 4 contract opened at ₹85399 per 10 grams and rose to the level of ₹86,243 per 10 grams, 349 points below its all-time high of 86,592 per 10 grams. Around 2:45 PM, MCX Gold for April 4 contract was 0.84 per cent up at ₹86,100 per 10 grams.

Heightened global uncertainty, slowing economic growth, and aggressive central bank buying have been the key triggers behind the sharp rise in gold prices this year.

Domestic spot gold prices have jumped over 12 per cent this year, climbing from ₹75,913 to ₹84,828.00 per 10 grams.

Trump's 25 per cent tariffs against Mexico and Canada and 20 per cent tax on goods from China came into effect on Tuesday.

Trump's tariff move have attracted sharp counters from its trade allies, with China announcing additional tariffs of 10-15 per cent on certain US imports from March 10. According to media reports, China also announced a series of new export restrictions for designated US entities.

Moreover, according to a Reuters report, Canadian Prime Minister Justin Trudeau said Ottawa would respond with immediate 25 per cent tariffs on $20.7 billion worth of US goods.

Trade war fears have supported gold prices as the yellow metal tends to gain during times of economic and political uncertainty.

Can gold prices touch a fresh peak?

According to Jateen Trivedi, VP Research Analyst—Commodity and Currency, LKP Securities, the fresh upside in gold prices comes as global uncertainty persists.

"The rally was driven by fresh tariff retaliations, with Canada and China imposing tariffs on the US, fueling safe-haven demand. On the economic front, key US data, including ADP Nonfarm Employment, nonfarm payrolls, and unemployment figures, will be closely monitored. Gold is expected to trade within a range of ₹84,500- ₹86,750," said Trivedi.

Read all market-related news here

Read more stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.