Gold Prices Hit Record High Amid Trade War Fears

The escalating trade tensions between the US and China have pushed gold prices beyond the $3,200 per ounce mark for the first time, setting a new record. This surge has also brought domestic prices close to the significant Rs 1 lakh per 10-gram threshold, reaching Rs 96,000 by Friday evening.

Market Reactions and Analyst Insights

The recent volatility in gold prices comes after a sharp decline, triggered by US President Donald Trump's aggressive tariff policies. These actions have not only affected global equity and bond markets but also weakened the dollar, fueling fears of a potential recession. According to Saumil Gandhi, a senior analyst at HDFC Securities, the demand for gold as a safe haven has surged in response to these developments.

Key Factor: The dollar index's drop below the 100 level has further buoyed gold prices, marking a significant shift from its earlier peak at 109.6 earlier this year.