Gold Nears Rs 1 Lakh Amid Trade War Tensions: Key Price Levels to Watch

Gold is nearing the much-awaited price level of Rs 1 Lakh (per 10 grams) price mark as concerns over trade wars continue to weigh down the overall investor sentiment. The demand for the safe haven asset has resulted in a 26% surge in gold's price level so far this year. In the Delhi NCR region, the rate of 24-carat gold stood at Rs 98,500 per 10 grams on Monday, just inches away from the speculated Rs 1 Lakh level.

While tariff tensions continue to loom, China's retaliatory steps have further taken a tool on investor sentiment. On Monday, China issued an official warning to countries considering making trade deals with the US that could harm China's interests. This has escalated concerns around trade wars.

Meanwhile, other asset classes, especially US equities, are currently bleeding. On Monday, the Dow Jones Industrial Average crashed over 1,000 points or 2.7%. Meanwhile, the S&P 500 index and Nasdaq also witnessed a similar trajectory and plummeted over 2.7% and 3%, respectively. Even the dollar index has reached a 3-year-low to 97.92.

"The rally is being supported by escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis. Continued buying from China, global central banks, and institutional investors has added momentum to the bullish sentiment," said Jateen Trivedi, VP research analyst- commodity and currency, LKP.

Comex gold approached the $3,400 mark, trading near $3,395, while MCX gold surged to Rs 96,775, registering fresh all-time highs, Trivedi said.

Key ranges to watch out

While trade tension have largely pushed up the yellow metal's price level, increased activity among ETF investors is also providing additional support to the commodity, as per analysts.

"On chart... prices now holds support at 95,550 and next at 94,200, while upside potential resistance is seen at 97,580/ 98,200," said Pranav Mer, vice president, EBG - commodity and currency research, JM Financial.

"Technically, as long as Comex holds above $3,250 and MCX above Rs 91,000, the uptrend remains intact. Any dips towards Rs 93,000 in MCX may offer fresh buying opportunities. However, given the elevated levels, speculators are advised to maintain low-risk positions to manage potential volatility," Trivedi said.