Gold Price Nears Rs. 1 Lakh Per 10 Gram, US-China Tariff War To Blame?

In a new record, gold prices have soared by Rs 98,100 per 10 grams in New Delhi on Wednesday (April 16). This comes amid the rush for acquiring the assets globally that has been escalated by the trade war between the US and China.

Later on the same day, the price went down slightly in the national capital to close at Rs 97,500. However, it failed to come down in cities like Bengaluru (Rs 97,820), Hyderabad (Rs 97,760), Chennai (Rs 97,750), and Kolkata (Rs 97,645). On Thursday, the prices fell slightly more.

 Wednesday’s gold price per 10 grams rose by Rs 1,650 to hit the all-time high. As per the All India Sarafa Association, the precious metal of 99.9 per cent purity had finished at Rs 96,450 per 10 grams on Tuesday.

Silver prices went High too

Silver prices also soared by Rs 1,900 to Rs 99,400 per kg on Wednesday. The white metal closed at Rs 97,500 per kg on Tuesday.

Linked to geopolitical uncertainty?

 The price high was driven by geopolitical uncertainty involving the lack of any constructive progress in the US-China tariff negotiations. Until there is a concrete update indicating de-escalation, gold is likely to remain elevated, experts have opined.

In the global market, spot gold rose to touch a record high of USD 3,318 per ounce. 

“Gold surged to a record high, driven by growing trade war concerns after the US government tightened export rules to China,” Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, was reported to have said.
US President Donald Trump’s announcement of initiating an investigation into whether tariffs are needed on critical minerals further fuelled the market anxiety. Yesterday,  the US administration further raised tariffs on most goods from China to 245%.