In the Delhi bullion market, 24 carat gold was priced at Rs 99,700 on Monday, against Rs 98,300 on Saturday, moving up Rs 1400 per 10 gm from the previous session. Silver was priced Rs 98,500 per kg up from Rs 98,000 on Saturday
Chennai: Gold in the domestic spot market inched closer to Rs one lakh mark as China took a tough stance against the US in the trade war.
In the Delhi bullion market, 24 carat gold was priced at Rs 99,700 on Monday, against Rs 98,300 on Saturday, moving up Rs 1400 per 10 gm from the previous session. Silver was priced Rs 98,500 per kg up from Rs 98,000 on Saturday.
In the Multi Commodity Exchange, gold moved up to Rs 97,236 per 10 gm as the yellow metal crossed $3400 per ounce and touched $3424 in the international market at around 7 pm Indian time on Monday. Gold opened Monday’s trade at $3370 and the immediate resistance for gold was $3,425 followed by $3,450.
While the markets have been expecting China to loosen its stance and sit with the US at the negotiating table, its Commerce Ministry said that it "firmly opposed" countries making broader economic deals with America that compromise its interests.
"To seek one's own temporary selfish interests at the expense of others' interests is to seek the skin of a tiger," Beijing said. China's warning came amid reports about the Trump administration's plan to pressure nations seeking tariff negotiations from the US to curb trade with China. Several countries including those in South-east Asia, Japan and India are seeking bilateral trade agreements with China. These triggered fears of intensifying trade war.
Further, China was also reportedly trying to increase its services trade and expand AI assisted services, indicating that it wants to cut its dependence on merchandise trade with the US.
“The dollar index is dropping and was seen at the lowest level since 2022. Uncertainties, central bank buying and ETF buying remain supportive to gold and the metal has appreciated 36 per cent since January,” said Ajay Kedia, MD, Kedia Commodities.
If the tensions remain, gold is expected to cross Rs 1 lakh in the next few sessions in the domestic spot market. In the MCX, gold may see Rs 99,000 levels in the medium term.
“However, prices could soften if a truce between China and the US is made and trade war tensions ease. We expect the global community and industry to put pressure on both the countries to ease their stand in the coming weeks. We also expect organisations and groups like WTO, G7 and G20 to chip in for an amicable solution,” said Kedia.
