Gold Price Today: MCX Gold Rate Reaches New Peak of ₹86,875 per 10 gm Amid US Inflation Concerns

Market Performance

Gold prices experienced an upward movement in early trading on Thursday as concerns over trade tensions continued. The Multi Commodity Exchange (MCX) gold rate opened at ₹86,816 per 10 grams and quickly reached a new high of ₹86,875 per 10 grams shortly after the market opened. In the international market, spot gold was priced at $2,945 per ounce, while COMEX gold traded at $2,954 per troy ounce.

Factors Influencing Gold Prices

The ongoing concerns surrounding global trade tensions and economic uncertainty have contributed to the surge in gold prices. Despite a slight slowdown in US consumer inflation for February, market apprehensions remain high due to the potential impact of increased tariffs on global trade.

The U.S. Consumer Price Index (CPI) revealed a lower-than-expected increase of 2.8% compared to the previous month's 3%. However, market sentiment suggests that upcoming import tariffs could increase inflation in the coming months, influencing demand for gold as a safe-haven asset.

Global Economic Trends

Recent economic data indicates that inflation concerns continue to shape market trends. Lower inflation figures allow the US Federal Reserve to consider interest rate adjustments. Historically, gold tends to perform well in low-interest-rate environments, becoming a more attractive investment than interest-bearing assets.

Additionally, policy changes regarding tariffs have notably impacted market dynamics. The US recently increased tariffs on imports from China to 20% and a 25% duty on goods from Canada and Mexico. This move initially escalated trade tensions, though a temporary exemption was granted for certain goods that comply with trade agreement rules.

Summary

Gold prices have continued upward trend due to persistent trade concerns and economic uncertainty. Despite a slight decline in inflation, expectations of rising import costs and potential future policy changes keep investors cautious. The international gold market remains responsive to these economic developments, with prices reflecting ongoing uncertainties in global trade and financial policies.