Domestic gold rates hit a fresh lifetime high of Rs 1,45,500 per 10 gram on the MCX on Monday, taking cues from global prices after US President Donald Trump threatened European countries with fresh tariffs on goods if they opposed his planned takeover of Greenland.
The February gold futures jumped by Rs 3,000 or 2% over the Friday price even as the COMEX gold hit the $4,674.90 an ounce mark, surging by $79.50 or 1.73%.
After a hardly negotiated trade deal last year, Trump reignited sentiments with an explosive threat to place levies on nations that oppose his takeover bid of Greenland.
Trump on Saturday said he would put rising tariffs from February 1 on goods imported from EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the US is allowed to buy Greenland, a step major EU states decried as blackmail.
On Sunday, European Union ambassadors reached broad agreement to intensify efforts to dissuade Trump from imposing those tariffs, while also readying a package of retaliatory measures should the duties go ahead, Reuters reported, quoting EU diplomats.
Gold begins the week on a firm note and the broader trend remains firmly bullish, though prices at elevated levels suggest that buying on intraday or positional dips remains the preferred strategy rather than chasing upside, Jateen Trivedi, Vice President - Research at LKP Securities said.
Moreover, persistent rupee volatility is keeping MCX gold relatively more volatile compared to COMEX, he said, adding that any renewed weakness in INR is likely to cushion downside risks and support domestic gold prices even during global pauses.
Price is trading close to the upper Bollinger band, confirming trend strength. Bands remain moderately expanded, suggesting sustained volatility with a bullish bias. Any retracement towards the middle band is likely to attract fresh buying interest.
MACD remains in positive territory with the histogram holding above zero, indicating that bullish momentum is still intact despite minor consolidation phases.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
Curated by David Kim
