In the Indian market, gold rose by Rs 300 to Rs 89300 per 10 grams while silver rose by Rs 1000 to Rs 99000 per kg. This increase continues due to the demand for safe investment and strength in global markets. Investors are turning to gold due to the escalation of US tariff war. Globally, gold is trading at $ 2926 per ounce.
Gold prices in the Indian market rose by Rs 300 on Wednesday. This took it to Rs 89,300 per 10 grams. This increase was seen due to strength in global markets and increasing demand for safe investment. Earlier on Tuesday, gold closed at Rs 89,000 per 10 grams.
On February 20, gold reached its all-time record level of Rs 89,450 per 10 grams. According to Saumil Gandhi, Senior Commodity Analyst, HDFC Securities, “Gold prices rose for the third consecutive day on Wednesday. The main reason for this is the trend towards safe investment and the softness in the US dollar, which has supported the yellow metal.” He also said that the US has imposed a new tariff.
In response, Canada and China have also increased tariffs on some US products. This has increased the possibility of trade war intensifying. In this situation, investors are moving towards safe assets, which has increased the demand for gold.
Silver also shines
Like gold, silver prices also rose sharply. After closing at Rs 98,000 per kg on Tuesday, silver rose by Rs 1,000 to Rs 99,000 per kg on Wednesday. At the same time, gold futures for April delivery on MCX (Multi Commodity Exchange) rose by Rs 38 to Rs 86,064 per 10 grams.
Gold prices also rose in global markets. Gold futures for April delivery rose 0.18% to $2,926 an ounce. However, spot gold remained almost stable at $2,917.72 an ounce.
Expert opinion on gold
“Gold is trading near $2,925 an ounce. But its sharp gains could be limited as US Commerce Secretary Howard Lutnick has hinted at possible tariff relief for Canada and Mexico. If this is agreed upon and the duty is reduced, then gold prices could come under pressure,” said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities.
He further said that investors are keeping an eye on the service PMI data of major global economies and US private employment data, which can give indications about the global economic scenario. At the same time, according to Jatin Trivedi, VP (Commodity and Currency Research Analyst) of LKP Securities, investors will also keep an eye on important economic data related to US jobs like ADP non-farm employment and non-farm payrolls, which will determine the direction of the bullion market.
