Gold prices touch record high of ₹86,875/10g in India
What's the story
Gold prices have hit a new all-time high of ₹86,875 per 10gm in India as April futures contracts at MCX rose by 0.21% today.
The surge comes amid continued uncertainty over US trade tariffs and slower global growth prospects.
The April futures contract for gold recorded gains yesterday as well, settling at ₹86,686 per 10gm after increasing 0.62%.
Silver's May futures contract settled at ₹99,476 per kilogram, gaining 1.37% on Wednesday.
Price surge
Gold prices have risen by ₹2,600/10g in March so far
The rise in gold prices is part of a broader trend seen in March, where gold has risen by ₹2,600 per 10gm and silver has surged by ₹5,061 per kilogram.
This upward trend isn't limited to domestic markets but extends globally as well.
Gold and silver both extended their gains recently with gold hitting a two-week high and silver a three-week high on international markets due to safe-haven buying.
Market reaction
US inflation data impacts market sentiment
The recent US inflation data, slightly lower than last month's report, has been interpreted positively by the market.
This is because it indicates that the US Federal Reserve may not be as aggressive in its monetary policy as earlier expected.
Manoj Kumar Jain from Prithvifinmart Commodity Research predicts gold and silver prices will remain volatile this week due to dollar index fluctuations, ongoing trade tensions between the US and other countries, and upcoming US Producer Price Index data.
Trading advice
Recommendations for gold and silver trading
For gold, Jain has given a buy around ₹86,400 with a stop loss at ₹86,080 and a target of ₹87,000.
For silver, he recommends buying around ₹98,800 with a stop loss at ₹98,000 and a target of ₹1,00,500.
These recommendations are based on current market conditions and potential future trends in precious metal prices.