MCX Gold Hits Record High of ₹86,875 per 10gm Amid Persistent US Inflation Concerns

Gold prices remained on an upward trajectory during early Thursday trading, driven by persistent trade uncertainties despite a slight easing in US inflation. On the Multi Commodity Exchange (MCX), gold opened higher at ₹86,816 per 10 grams, quickly touching a fresh peak of ₹86,875 within minutes of the market opening. In international markets, spot gold was priced at $2,945 per ounce, while COMEX gold traded at $2,954 per troy ounce.

As of 10:14 AM the MCX gold price in India have registered a moderate increase of ₹86,658.00 per 10 grams from its previous close.

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Factors Driving Gold Prices

Market analysts cite ongoing global trade tensions as a key factor in gold’s sustained price rally. Although US inflation figures for February came in lower than expected—the first full month of President Trump’s second term—investor concerns persist. Experts predict that gold may soon breach the critical $3,000 per ounce mark, having already broken the resistance at $2,930.

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, stated, "Even though inflation figures indicate a slowdown, trade uncertainties continue to weigh on market sentiment. This has reinforced gold’s status as a preferred safe-haven asset in times of economic distress."

Echoing this perspective, Manav Modi, Senior Commodity Analyst at Motilal Oswal, said, "Gold prices remain strong as safe-haven demand rises amid trade-related concerns. Additionally, a cooler-than-expected US inflation report has bolstered expectations of rate cuts by the Federal Reserve, further supporting bullion prices. While inflation has slowed to 2.8% from the previous month's 3%, looming tariff hikes may push up costs in the months ahead."

Marex analyst Edward Meir added, "Gold appears to be on track to reach $3,000 per ounce in the coming months. While the latest CPI data is encouraging, the full impact of higher tariffs has yet to be reflected in inflation figures."

US Inflation and Trade Policy

Recent economic data reveals that US consumer inflation rose at a slower pace than anticipated. However, analysts caution that this improvement may be temporary, as aggressive tariffs on imports are expected to drive up consumer prices in the near future.

A lower inflation environment gives the US Federal Reserve more flexibility to consider interest rate cuts—an outcome that typically benefits gold, which thrives in low-interest-rate settings due to its lack of yield.

Earlier this month, President Trump escalated trade tensions by increasing tariffs on Chinese imports to 20% and imposing a new 25% duty on goods from Canada and Mexico. He later provided a one-month exemption for goods meeting the rules of origin under the US-Mexico-Canada Agreement (USMCA).

Adding to the uncertainty, Trump initially announced plans to double tariffs on Canadian steel and aluminum to 50% but later reversed course. This unpredictability in trade policy has fueled investor anxiety, driving greater demand for gold as a safe-haven asset.

Outlook for Gold Prices

With global economic uncertainties and trade conflicts intensifying, analysts foresee continued upward momentum in gold prices. Central bank buying, particularly from emerging economies, is also playing a significant role in boosting demand for the precious metal. Additionally, geopolitical risks, including tensions in the Middle East and ongoing concerns over China’s economic slowdown, are expected to further support gold’s bullish trend.

As markets brace for potential Federal Reserve rate cuts, the appeal of gold as a hedge against economic volatility remains strong. If inflationary pressures resurface due to trade tariffs, gold may become an even more attractive investment. Analysts remain confident that the $3,000 per ounce milestone could be reached in the near future, with investors closely watching upcoming economic data and policy announcements.