Gold Soars Amid Global Trade Turmoil and Currency Fluctuations

Gold prices are expected to remain robust in the coming week, driven by global risk aversion and continued weakness in the US dollar. Analysts suggest that developments in US trade policies and economic indicators, such as Consumer Price Inflation (CPI) and retail sales data, will be key factors influencing the bullion market.

Jateen Trivedi, VP Research Analyst at LKP Securities, opines that gold will retain its strength, provided it stays above Rs 97,000 per 10 grams on the Multi Commodity Exchange (MCX). The persistent trade tariff tensions and a weak rupee are directing investors towards safe-haven assets like gold.

Despite an initial dip due to easing geopolitical tensions and US labor market data, gold rebounded when President Trump announced fresh tariffs on Canada and Brazil. The yellow metal's demand is further bolstered by potential US sanctions on Russia and additional tariffs, affirming its status as a secure investment during uncertain times.

(With inputs from agencies.)