Gold Crosses ₹83,000-Mark in Spot Markets; Crosses Lifetime High on MCX

Following Donald Trump's remark on lowering interest rates, Gold witnessed a steep rally yesterday. On Friday, MCX gold futures clocked a lifetime high of ₹80,312 per 10 grams while crossing ₹83,000 mark in the spot markets.

Anuj Gupta, Head - Commodity & Currency at HDFC Securities said that Trump’s statement in the World Economic Forum in Davos steered the rally in the yellow metal. He confirmed gold surpassing ₹83,000 mark on Friday.

Quoting All India Sarafa Association, the price of gold (24 karat gold) touched the levels of ₹83,100 per 10 grams in the physical markets, PTI reported.

Following the remarks, the dollar index also fell to 107.69 against a basket of six top currencies, down by 0.36 points or 0.33%. The movement of the dollar is inversely proportional to the yellow metal.

As of now, gold futures surged by 4.5%, Gupta said.

Meanwhile, March silver futures were trading at ₹91,870 per kg, up 0.79% or ₹721.

Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities said, “Gold extended gains on Friday, with spot gold in the domestic market hitting fresh all-time highs.”

Gandhi added that the current rally in the yellow metal is driven by uncertainty surrounding the potential US tariffs plan and various other policies under Trump 2.0, thereby prompting investors to pump in their money in safe haven assets.

Deveya Gaglani, Research Analyst-Commodities, Axis Securities said, “Prices in MCX are near record high as Trump trade policies and tariff plans created an uncertain environment in the market, which may boost safe-haven demand.”

In the international markets, Comex gold futures surged by $15.50 per ounce or 0.56% to $2,780.50 per ounce.

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said that investors are set to keep a hawk eye on PMI data for early indications of economic activity in major global economies.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said investors will be looking forward to the upcoming Union Budget and the US Federal Reserve's interest rate decision. These events will set the tone for the future course of action in the bullion market.

Gold Trading Strategy

Gupta remains bullish on the prospects of gold and recommends buying the yellow metal at around ₹75,500-75,700. He places a stop loss of ₹71,500, while setting a target price between ₹85,300-87,000 for Dhanteras this year.