Golden Opportunity or Risk? China's Tariffs Ripple Through MCX Gold Markets

Gold prices on the Multi Commodity Exchange (MCX) are likely to remain volatile following China imposing a 34% duty on all American imports as a retaliatory response to President Trump's broad reciprocal tariffs. All these have triggered the alarm of a global trade war and financial crisis, which are affecting gold rates globally.

 

June expiration MCX gold futures were trading at ₹88,130 for 10 grams on April 5, gaining little despite selling in the general market. Volatility is expected to persist by analysts as investors balance safe-haven demand versus the bear trend due to margin calls and liquidation in other asset classes. Spot gold has also fallen by 2.5%, dipping to $3,020 an ounce, the lowest in a week.

 

China's tariffs have triggered greater demand for physical gold in Asia, specifically from Chinese investors who are turning to the precious metal as they flee. Indian buyers are, however, waiting for further price corrections before making purchases. Rising trade tensions will be supporting gold in the short term as markets anticipate further retaliatory actions and central bank intervention.

 

Source: GoodReturns