Gold price surges to ₹90,000 per 10 grams: How to trade amid rising prices?

Gold prices soared to a record high on Wednesday, March 19, surpassing ₹90,000 per 10 grams in India. While, silver also hit an all-time high on the domestic front in India, breaching ₹1 lakh.

One of the key drivers behind the surge in gold and silver prices was the ongoing trade tension between the U.S. and Europe. President Trump’s fresh tariff threats added further volatility to the markets.

The U.S. president threatened to impose tariffs of up to 200 per cent on European alcoholic beverages, including wines and champagnes, in retaliation for the European Union’s decision to impose a 50 per cent levy on American whiskey. This move was seen as a response to Trump’s tariffs on imported steel and aluminum.

“In addition to the geopolitical tensions, the soft U.S. inflation data also played a critical role in supporting the precious metals market. U.S. inflation in February fell more than expected to 2.8 per cent, below expectations of 2.9. This decline in inflation reinforced market expectations that the Federal Reserve might cut interest rates in the near future,” brokerage firm Motilal Oswal (MOFSL) said in a report.

This week, market focus will be on key economic data releases, including U.S. retail sales, the IIP, the Philly Fed Manufacturing Index, and a few housing related numbers, which could provide insight on overall economic growth.

How to trade gold amid rising prices?

According to market experts, weak inflation data, and U.S. economic concerns, gold and silver rallies reflect growing risks. The Fed’s actions will be a key driver of market sentiment in the near term, shaping global economic expectations.

“Investors are rushing to gold as trade tensions continue to take centerstage apart from technical factors at play. With the USD at a critical stage in the near term, though long term a downfall is expected if the US does undergo a recession at some stage, gold will likely find continuous supports in the meanwhile,” said Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution.

MOFSL believes that both gold and silver is likely to witness some consolidation. “After a sharp rally, both Gold and Silver could witness some consolidation; however, bias for both continues to remain on higher side. Investors could continue to keep a buy on dips stance for both metals,” the brokerage firm said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.