Gold Prices Hit Historic High in Futures Trade

Gold prices have surged to a record-breaking Rs 97,000 per 10 grams in futures trade, marking a significant milestone in the commodities market. The June delivery contract peaked at an all-time high of Rs 97,365 per 10 grams, fueled by robust local demand and global economic tensions.

Global Factors Driving the Rally

The rally in gold prices is attributed to escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis. Jateen Trivedi, VP Research Analyst at LKP Securities, highlights the role of continued buying from China, global central banks, and institutional investors in sustaining the bullish sentiment.

International Gold Market Trends

On the global front, gold futures extended their bull run, jumping USD 113.6 per ounce to trade at a new all-time high of USD 3,442 per ounce. The weakening US dollar and increasing concerns about a global economic slowdown, exacerbated by US-China trade tensions, are key factors behind this surge.

Market Reactions and Future Outlook

US President Trump's tariffs and trade policy uncertainties have unsettled global markets, prompting investors to shift away from US assets. The recent criticism of US Federal Reserve Chair Jerome Powell by Trump has further contributed to the dollar's decline, making gold more affordable for international buyers.