MUMBAI – Gold prices surged past ₹86,000 per 10 grams on the Multi Commodity Exchange (MCX) on March 4, inching closer to its all-time high as global markets reacted to heightened trade tensions following the implementation of new U.S. tariffs on Canada and Mexico.
The MCX Gold April contract opened at ₹85,399 per 10 grams and climbed to an intraday high of ₹86,243 per 10 grams, just ₹349 short of its record peak of ₹86,592. By 2:45 PM, the contract was trading 0.84% higher at ₹86,100 per 10 grams.
Trade War Concerns Drive Gold Rally
The surge in gold prices comes amid rising global economic uncertainty, triggered by U.S. President Donald Trump's decision to impose a 25% tariff on Canadian and Mexican goods, along with a 20% levy on Chinese imports.
In response, China has announced retaliatory tariffs of 10-15% on certain U.S. goods, effective from March 10. Additionally, Canada has introduced a 25% tariff on $20.7 billion worth of U.S. products, further escalating trade tensions.
Factors Supporting Gold’s Uptrend
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Trade War-Driven Safe-Haven Demand
- Rising trade disputes between major economies have increased risk aversion, prompting investors to shift funds to gold as a hedge against market instability.
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Central Bank Buying and Economic Slowdown
- Global central banks have been actively increasing gold reserves, indicating concerns over economic growth and inflationary pressures.
- Slowing economic indicators in the United States and Europe have further boosted demand for the precious metal.
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Strong Domestic Performance in 2025
- Gold prices have climbed over 12% in India this year, rising from ₹75,913 per 10 grams in January to ₹84,828 before breaching the ₹86,000 level.
Will Gold Hit a New Record?
Market analysts remain optimistic about gold's upward momentum, with some predicting a potential new high in the coming weeks.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, “The fresh round of tariffs and retaliatory measures from China and Canada have fueled safe-haven demand for gold. Investors are closely watching key U.S. economic data, including nonfarm payrolls and unemployment figures. Gold is likely to trade in the ₹84,500 – ₹86,750 range in the near term.”
Market Outlook
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If trade tensions worsen, gold could surpass its all-time high and see further gains.
- Upcoming U.S. economic data releases will be crucial in determining short-term price movements.
- Continued central bank purchases and inflation fears may further support long-term gold investments.
Conclusion
Gold continues to be a preferred safe-haven asset amid rising geopolitical tensions and global economic uncertainty. As investors look for stability, the precious metal may extend its gains, potentially setting a new record high in the weeks ahead.
Investors are advised to monitor global market trends closely and consult financial experts before making investment decisions.
