IGI Logo

"Gold witnessed a sharp rally as prices surged by $40 in Comex and Rs.1,800 in MCX, primarily driven by the rapid escalation of the US-China tariff war. China's countermeasures and the US hiking tariffs to 104% on key Chinese imports have reignited fears of a global slowdown, prompting a fresh wave of safe-haven buying in gold. Domestically, the RBI’s Monetary Policy Committee added further fuel to the bullish sentiment by cutting the repo rate by 25 bps and shifting to an accommodative stance. The central bank also revised its GDP forecast lower, citing global tariff tensions and uncertainty as key downside risks. This dual impact of geopolitical uncertainty and dovish monetary policy has set the stage for continued volatility in gold. In the near term, MCX Gold is expected to remain on a roller-coaster ride within the broad range of Rs.88,500 to Rs.91,000."

 

 

Above views are of the author and not of the website kindly read disclaimer