Hyderabad: Gold prices continue their upward trend as US President Donald Trump’s tariff policies drive investors toward safe-haven assets.
On Tuesday, MCX gold opened higher at Rs 85,399 per 10 gm. Within minutes, it reached an intraday high of Rs 85,518.
Moreover, the global spot gold price remained strong at USD 2,891 per ounce. It surged by 1.2 percent on Monday.
The new rally was triggered by Trump’s confirmation that Mexico and Canada would not be exempt from upcoming tariffs. It also signed order doubling levies on China to 20 percent.
Geopolitical factors
Apart from tariffs, gold prices are also reacting to heightened geopolitical risks amid ongoing Russia-Ukraine conflict.
The uncertainty is further increased as US halted military aid to Ukraine.
Though, the gold prices are increasing due to tariffs and uncertainties, the yellow metal will face pressure once there is any positive development in Russia-Ukraine relations or global trade tariffs.
Resistance, support for Gold prices
On February 24, gold hit a record high of USD 2,950 per ounce. However, it declined later due to profit booking.
Meanwhile, Goldman Sachs analysts have projected that policy uncertainty and tariff fears could push gold prices as high as USD 3,300 per ounce by year-end.
According to Anuj Gupta, vice president of Commodity & Currency at HDFC Securities, the gold price pattern suggests a resistance level at Rs 86,580 per 10 gm and strong support at Rs 83,800 per 10 gm.
