Gold rate today: While everyone was quite bullish about the gold rally, no one would have thought that the pace of rise would be faster than expected. Earlier in March, Goldman Sachs had raised its 2025 gold price target to $3,300 per ounce, only to revise it again to $3,700 less than a month later.
With the year-end target already surpassed in the first half of CY25, the yellow metal might continue its strong performance in the bullion market. The price of 24-carat gold (per 10 grams) stood at Rs 96,180 in New Delhi on Thursday, as per Goodreturns website.
"Gold showed a solid rally once again amid renewed tariff panic, as market participants seized the opportunity to go long amid the escalating trade tussle. MCX Gold hit landmark levels of Rs 95,000, while Comex Gold surpassed $3,300, reflecting strong safe-haven demand," said Jateen Trivedi, VP research analyst - commodity and currency, LKP Securities.
Geopolitical tensions and macro turbulence owing to trade wars coupled with the worrying commentary by the Federal Reserve chairman Jerome Powell, further pushed the gold demand sky-high. The Fed Chairman warned that President Trump's tariff-driven policybook could trigger inflation and dampen economic growth. "Tariffs are highly likely to generate at least a temporary rise in inflation," Powell said, while also cautioning that the inflationary effects "could be more persistent," eventually putting pressure on the Fed’s twin goal of price stability and full employment.
Bullion remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about growth slowdown according to Manav Modi, senior analyst, commodity research at Motilal Oswal Financial services.
Will Gold rise further?
Atleast that's what commodity analysts believe as long as trade wars continue to drive chaos in global investor sentiment.
"The (gold) rally is largely driven by geopolitical uncertainty and the absence of any constructive progress in tariff negotiations between the US and China. Until there is a concrete update indicating de-escalation, gold is likely to remain elevated," said Trivedi.
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On year-to-date basis, the rate of yellow metal has surged over 26% so far this year, beating the return rate of every other asset class, including equities.
"However, the momentum could fizzle out if both economic giants signal a return to trade talks or ease tensions. For now, gold is expected to trade in a range of Rs 94,000 to Rs 95,500 in MCX, with eyes firmly on global developments" Trivedi added.
