Gold prices soared to a fresh record high on Monday, April 21, as uncertainty over the global economy and a weakening US dollar drove investors toward safe-haven assets. On the Multi Commodity Exchange (MCX), gold for June 5 delivery touched ₹96,747 per 10 grams in early trade, marking a new all-time high. By 9:10 AM, the contract was trading 1.36% higher at ₹96,552 per 10 grams.
Internationally, spot gold also surged, reaching a historic peak of $3,384 per ounce during the session. Investors worldwide sought the safety of gold as tensions between the US and China intensified, raising fears of a prolonged trade war. A major factor supporting the rise in gold prices is the weakness of the US dollar. The dollar index dropped to a three-year low, making gold—priced in US dollars—cheaper for holders of other currencies and boosting its global demand.
In the previous session, MCX gold had dipped by 0.44% to ₹95,239 per 10 grams due to profit booking. However, renewed trade war concerns prompted fresh buying at lower levels.
While US President Donald Trump recently announced a pause on reciprocal tariffs, his firm stance against China continues to fuel fears of a full-blown trade conflict. Market participants worry that a prolonged trade war between the world’s two largest economies could severely impact global economic growth.
Adding to the uncertainty, Reuters reported that White House economic adviser Kevin Hassett revealed the Trump administration is still considering whether it can remove Federal Reserve Chair Jerome Powell, further shaking investor confidence.
As geopolitical and economic tensions remain high, analysts suggest that gold may continue to shine as a preferred investment in the near term.
