Gold price today: Gold rates jumped to hit a new record high in the domestic futures market in Thursday’s evening session on concerns over an escalating trade war between the United States and China.MCX Gold June 5 contract jumped over a per cent to hit a fresh high of ₹91,464 per 10 grams. Around 5:20 PM, the same contract was 1.44 per cent up at ₹91,100 per 10 grams.
International gold prices also rose on trade war uncertainty. Comex Gold jumped nearly 2 per cent during the session.
US President Donald Trump, on Wednesday, announced a 90-day pause on reciprocal tariffs while raising duties on Chinese imports to a staggering 125 per cent.
While Trump’s temporary pause on reciprocal tariffs has come as a major relief for stock markets, his aggressive stance on China has raised fears that the world still faces the possibility of a major trade war between the world’s two largest economies — a development that could seriously impact global economic growth.
Gold prices tend to gain during times of geopolitical and economic uncertainty.
Central bank buying, strong retail demand and anticipation of rate cuts by the US Federal Reserve are additional factors supporting gold prices.
According to Bloomberg, Chinese investors invested a record amount into gold-backed exchange-traded funds (ETFs) last week.
“Inflows to four major onshore gold ETFs, including Huaan Yifu Gold ETF, hit a record of 7.6 billion yuan ($1 billion) last week, according to Bloomberg’s calculations, with strong inflows continuing this week,” reported Bloomberg.
The minutes of the US Federal Reserve’s last policy meeting showed that policymakers believe the US economy could experience stagflation—a situation of higher inflation and lower growth—and that the road ahead is challenging.
According to Reuters, the market is currently pricing in 84 basis points rate cuts by the US Fed by the end of the year.
Investors’ focus is now on the US consumer price index data, which will influence expectations about the Fed’s interest rate trajectory.
