Gold price today: MCX Gold hits record high on mounting trade war concerns; can rates rise further?

Gold price today: MCX Gold hit a record high in trade on Thursday, April 17, supported by mounting concerns over the ongoing trade war and its impact on global economic growth. Weakness in the US dollar and healthy spot demand are also among the key factors that support gold prices. MCX Gold June 5 contracts jumped to a fresh all-time high of ₹95,935 per 10 grams during the session. Around 11:20 AM, the contract was 0.03 per cent up at ₹95,685 per 10 grams.

International gold prices also hit a record high due to the heightened demand for safe-haven assets and the dollar's weakness.

The dollar's fall against its peers is also a key factor supporting gold prices. The US currency looks set to see a fourth consecutive weekly loss.

There is much uncertainty about Trump's tariff policies. As Reuters reported on Tuesday, he ordered a probe into potential new tariffs on all critical minerals imports as well as reviews into pharmaceutical and chip imports.

Meanwhile, he has raised tariffs on China to a whopping 245 per cent, further escalating the trade war between the world's two largest economies.

"The rally is largely driven by geopolitical uncertainty and the absence of any constructive progress in tariff negotiations between the US and China. Until there is a concrete update indicating de-escalation, gold is likely to remain elevated. However, the momentum could fizzle out if both economic giants signal a return to trade talks or ease tensions," said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.

In the previous session, MCX Gold June 5 contracts settled with a solid gain of 2.42 per cent at ₹95,710 per 10 grams after hitting a lifetime high of ₹95,740 during the session.

Global uncertainty emanating from US President Donald Trump's tariff policies is the key driver of gold prices. Domestic spot gold prices have surged 24 per cent this year.

Trump's tariff policies could drive up inflation and unemployment in the US, casting a cloud of uncertainty over the US Federal Reserve's interest rate trajectory.

According to a Reuters report, Fed Chair Jerome Powell said on Wednesday that the central bank would wait for more clarity on the economic outlook before considering any changes to interest rates. He also warned Trump’s tariff policies could further distance inflation and employment from the Fed’s mandated targets.

Can MCX Gold price rise further?

According to Trivedi, for now, gold is expected to trade in a range of ₹94,000 to ₹95,500 on MCX, with eyes firmly on global developments.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, Gold has support at $3,300-3,274, while resistance at $3,374-3,400 per troy ounce. MCX Gold has support at ₹95,050-94,400 and resistance at ₹96,000-96,600.

Jain suggests buying gold around ₹95,200 with a stop loss of ₹94,750 for the target of ₹96,000 and silver around ₹95,800 with a stop loss of ₹95,220 for the target of ₹97,000.

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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, as market conditions can change rapidly, and circumstances may vary.