MCX Gold and Silver rise over 1% as US-China trade war escalates; check details

MCX Gold and silver trades higher on Tuesday. Gold prices in the domestic futures market rose over 1%, replicating the gains witnessed in the global markets. International gold prices rose from their 3-week low as investors sought safe assets amid escalating trade tensions between the US and China.

As of 3:00 pm, the MCX Gold June delivery contract was trading at ₹87,900 per 10 gram, up by 1.12% or ₹972 from its previous closing of ₹86,928 per 10 gram. The open interest of the contract stood at 15,323 lots.

Meanwhile, MCX Silver May futures rose 1.31% to trade at ₹89,400 per kg, with a day high of ₹89,676 and day low of ₹88,799.

MCX Gold and silver prices rose as appeal for safe haven assets increased once again after US President Donald Trump threatened to impose an additional tariff of up to 50% on Chinese goods if the country does not roll back its recent decision to impose 34% higher tariffs on American imports. Weakness in the US dollar index also provided support to bullion.

MCX Crude oil futures declined marginally as traders/investors trimmed their positions on concerns that US led trade wars would lead to global recession and reduce demand for commodities such as crude oil. Moreover, OPEC+’s surprise output hike last week has also dampened crude oil prices.

The contract for the April delivery was trading at ₹5,255, down by 0.72% from its previous closing of ₹5,293. The open interest of the contract stood at 17,437 lots.

The contract for the May delivery was trading at ₹5,273, down by 0.47% from its previous closing of ₹5,298.00. The open interest of the contract stood at 3,888 lots on MCX.

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