Gold rates skyrocket in Delhi, jump ₹6,250 to surpass ₹96,000 level as US-China trade war escalates

Gold rates hit another lifetime high, surging ₹6,250 and surpassing the ₹96,000 level to hit ₹96,450 per 10 gm (24K, 99.9% purity) in the national capital on Friday, April 11, driven by heavy buying from jewellers and investors, according to the All India Sarafa Association. Gold of 99.5% purity touched ₹96,000 per 10 gm on Friday, reaching its all-time high.

On Wednesday, gold rates settled at ₹90,200 per 10 gm (99.9% purity) and ₹89,750 per 10 gm (99.5% purity). Bullion markets were closed on Thursday for the occasion of Mahavir Jayanti.

Domestic gold rates ended their four-day losing run on Friday and made their biggest jump in over two months, increasing by ₹6,250 in a single session. Earlier on April 1, gold prices jumped by ₹2,000.

Silver prices jumped as well, marking a steep rise of ₹2,300 to hit ₹95,500 per kg, in line with the global trends. Silver rates settled at ₹93,200 per kg on Wednesday.

On the Multi Commodity Exchange, gold futures for the June delivery climbed ₹1,703 to touch its lifetime high of ₹93,736 per 10 gm. In the overseas markets, spot gold touched a fresh peak of $3,237.39 per ounce, later settling at $3,222.04 per ounce. Meanwhile, Comex gold futures in the Asian market hours increased to $3,249.16 per ounce, reaching its record high.

Gold’s unstoppable rally

Gold prices rose amid escalating global trade war fears and the rising possibility of a full-blown trade conflict between the US and China. US President Donald Trump increased tariffs on imports from China to 125% and later to 145%. Trump’s tariffs on China led to retaliatory duties of up to 125% levied by Beijing.

Before this, the US had increased tariffs on China to 104%, and China retaliated by increasing tariffs on US goods to 84%. These developments over just 24–48 hours significantly boosted gold’s demand as it is a safe haven asset.

Currently, gold prices have been rising due to several factors including falling dollar value, US Treasury selloff, and US CPI data, among others.

The collection of ongoing fluctuations in the financial markets, economic uncertainties, fears of stagnation, and risks of recession are expected to continue fuelling gold’s bull run, as per the investment banking company UBS.

With the US at the heart of the ongoing trade war, for the long term, gold prices are quite likely to rise. The global move to diversify reserves away from the US dollar that has seen central banks buy gold at a record pace of over 1,000 metric tonnes annually over the last three years is unlikely to be impeded by the trade war, according to a PTI report citing the global wealth management firm.