Gold rate today: Futures hit record high of ₹96,747/10 gram; check the only factor that can limit stellar rally

Last seen, the price stood at ₹96,699 per 10 grams, up ₹1,445, or 1.52%.

Similarly, the subsequent contract for August delivery rallied by ₹1,464, or 1.53%, to hit a record high of ₹97,360 per 10 grams on the MCX.

The commodity markets were closed on Friday on account of Good Friday.

On the international front too, gold hit a record high level, spurred by concerns over global economic growth amid the US-Sino trade war, while a weaker dollar further boosted the rally.

Spot gold advanced 1.4% to $3,373.70 an ounce at the time of writing this report, after hitting a record high of $3,385.08 earlier in the session.

The dollar index hit a three-year low, making gold more attractive for other currency holders.

1. Analysts said the ongoing trade tensions between the United States and China have heightened global uncertainty, prompting investors to seek refuge in safe-haven assets. As long as a resolution remains elusive between the world's two largest economies, the bullish momentum in gold is likely to persist, they added.

2. A decline in US dollar supported gold. Gold and the US dollar are considered to have an inverse relationship — meaning that the price of gold tends to be stronger when the dollar is weak and vice versa.

This is partly because gold is priced in US dollars on global markets, so changes to the dollar can impact gold's price. When the dollar is strong, gold becomes more expensive for buyers purchasing it in other currencies.

4. Besides, a 25 basis point rate cut by the European Central Bank (ECB) also supported gold prices. Lower interest rates are favourable for gold since they increase the money supply.

When interest rates are high, investors can earn a return by holding assets such as bonds or savings accounts. But gold doesn’t yield anything. So when rates fall, the opportunity cost of holding gold decreases. There's less "penalty" for holding gold instead of interest-bearing assets.

5. According to a recent report by the World Gold Council (WGC), seasonal and wedding-related purchases in India may support gold demand in April and May. Investor interest is likely to strengthen as gold’s appeal as a safe-haven asset and portfolio diversifier heightens amid global economic uncertainties and financial market volatility.

6. Earnings reports from leading jewellery retailers for the January-March quarter point to a strong performance, with average revenue growth up 25–35% YoY. This was largely fuelled by wedding-related demand, festive buying, and a noticeable consumer shift toward gold – both as an adornment and a store of value – notes the WGC report.

7. Early indicators of advance bookings for regional festivals such as Akshaya Tritiya – a key period for gold purchases – point to strong consumer sentiment. Further underlining this bullish outlook, leading retailers plan to open between 150 and 200 new showrooms over the next 12 months, setting the stage for continued gains in market share and deeper penetration across regions.

8. Analysts note that gold is showing very high volatility, and only any positive talks on a US-China trade deal could limit gains of precious metals; otherwise, it could continue to show strength.