Gold price today: Precious metal surges by ₹2,430 to reach all-time high of ₹88,500 per 10 gram; watch key levels

Gold price today: Gold prices surged by ₹2,430 to reach an all-time high of ₹88,500 per 10 grams in the national capital on Monday, driven by strong global trends and a depreciating rupee. MCX Gold for April 4 expiry jumped to a record high of ₹85,880 per 10 grams. 

The price of the precious metal surpassed the record level of USD 2,900 per ounce in global spot markets following US President Donald Trump's announcement of new 25% tariffs on all steel and aluminum imports to the United States.

According to a Reuters report, Trump said he would announce new 25 per cent tariffs on Monday on all steel and aluminium imports into the US, in addition to the existing metals duties. The report further added that he plans to announce reciprocal tariffs on many countries by Monday or Tuesday next week.

Gold prices rise in times of geopolitical uncertainty.

Trump's policies may further raise inflation in the US, which could mean that the US Fed will not cut rates soon.

Apart from global factors, the rupee's weakness has also boosted gold prices back home. The Indian rupee opened at a record low on Monday. It slipped 49 paise to an all-time low of 87.92 against the US dollar, compared to its Friday close of 87.43 per USD.

What should investors do?

According to Sugandha Sachdeva, the founder of SS WealthStreet, the recent surge in gold prices can largely be attributed to the safe haven demand as Trump administration imposed 10 per cent import tariffs on China and threatened to levy 25 per cent import tariffs on Mexico and Canada.

Sachdeva added that China, too, retaliated with its own tariffs and other export control measures, which has raised concerns about escalation in the US-Sino trade war.

"President Trump has also announced his plans to impose tariffs on several other countries next week. Rising economic uncertainty is boosting the appeal of gold. Concerns over President Trump's comments regarding plans for the Gaza Strip have raised worries about geopolitical risks in the Middle East region, further driving demand for gold," Sachdeva noted.

Sachdeva pointed out that technical structure suggests an overall positive bias in gold prices, yet some corrective waves could be seen.

"Given that prices have approached the upper end of the Bollinger band and RSI is signalling an overbought condition, a pullback could ensue. Initial support could be found around ₹83,800 per 10 gram, if this level is breached, further declines toward ₹83,300 per 10 gram mark could be seen," said Sachdeva.

"While gold has numerous conducive factors supporting its current highs, investors should be mindful of potential corrections and monitor key support levels closely," Sachdeva said.

Colin Shah, MD of Kama Jewelry expects gold prices to touch $3,000 in the international markets and ₹88,000 in the domestic market, respectively, given the uncertainty of a trade war and geopolitical tensions.

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