Islamabad, Mar 18, 2025: Gold prices have reached unprecedented levels, with MCX gold surpassing Rs 89,000 per 10 grams and international prices breaking past $3,000 per ounce.
This surge has been fueled by escalating trade tensions, inflation concerns, and growing global uncertainties, prompting investors to seek refuge in the precious metal.
Why Are Gold Prices Rising?
Experts attribute the gold rally to ongoing geopolitical risks and economic instability. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold prices skyrocketed on MCX as Comex gold crossed the $3,000 mark.
The rise is largely driven by persistent US tariffs, particularly the recent focus on European goods such as alcohol and cognac.
Market participants remain cautious, leading to consistent gold buying.
Additionally, the upcoming US retail sales data and the Federal Reserve’s policy meeting could influence the next price movement, with gold now trading in a range of Rs 87,250 to Rs 88,650.
Will Gold Prices Keep Rising?
Trade policies have been a significant catalyst for this surge. Prathamesh Mallya, DVP-Research at Angel One Ltd., highlighted that gold prices have increased by over 3% in the past week, driven by ongoing US tariff threats, trade conflicts, and speculation surrounding potential monetary easing by the Federal Reserve.
The European Union’s countermeasures against US steel and aluminum tariffs, along with the possibility of 200% duties on European wine and spirits, have intensified market uncertainty.
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Another key driver is rising geopolitical risks. According to Rahul Kalantri, VP Commodities at Mehta Equities Ltd., gold prices have breached $3,000 an ounce, while silver remains near $34.
Heightened tensions, such as Houthi rebel attacks in the Red Sea and US warnings to Iran, have amplified market anxiety.
Additionally, a weaker dollar has further strengthened gold and silver prices.
Gold currently finds support at $2,984-$2,960 and faces resistance at $3,024-$3,042, while in INR terms, support lies at Rs 87,640-Rs 87,420 and resistance at Rs 88,340-Rs 88,550.
Can MCX Gold Reach Rs 1,00,000?
Several factors suggest that gold’s upward momentum could continue, including central bank buying, inflation concerns, and a weakening dollar.
However, analysts believe that while gold may rise further, its trajectory will largely depend on Federal Reserve policies and broader global economic developments.
While the prospect of MCX gold touching Rs 1,00,000 per 10 grams is unlikely in the immediate future, continued market trends indicate that such levels could be reached in the coming years.
As investors closely monitor economic indicators and geopolitical shifts, gold remains a preferred asset for those seeking stability amid financial turbulence.
