Gold price Rates surges amid trade war fears and expected interest rate cuts
The expectation of a speedier rate cut by the US Federal Reserve, given that the tariff war is predicted to push the US economy into a recession, is another factor driving gold prices at the moment.
On Tuesday morning, market investors saw a sharp increase in gold prices in the domestic futures market as investors are seeking safe-zone due to widespread concerns that a trade war between the US and its trading allies would depress the world economy. At Rs 87,533 per 10 grammes, MCX Gold June 5 contracts saw a 0.70 percent increase.
The effects of a trade war on the world economy are gradually being discounted by investors. Investors think the trade war will only get worse in the future, causing a great deal of economic uncertainty since US President Donald Trump has shown no signs of reversing his tariff plans. When the economy is uncertain, gold prices typically rise.
The expectation of a speedier rate cut by the US Federal Reserve, given that the tariff war is predicted to push the US economy into a recession, is another factor driving gold prices at the moment.
The Reserve Bank of India's (RBI) monetary policy is another area of interest for investors. On April 9, the RBI MPC is expected to announce a 25 basis point rate cut, according to most experts.
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