Gold prices gain nearly 2%, Silver rises over 3% as US-China trade war intensifies

Gold and silver prices opened significantly higher on Monday, October 13. Gold futures traded at Rs 1,23,286 per 10 grams and silver at Rs 1,51,050 per kilogram on the MCX. The uptick was driven by renewed safe-haven demand amid fresh U.S.-China trade tensions. At the same time, broader economic and political uncertainties, along with expectations of further U.S. interest rate cuts, also lent support.

With today’s gains, both precious metals remain close to their lifetime highs, supported by expectations of U.S. rate cuts, steady central bank buying, and sustained safe-haven demand amid global economic uncertainties.

In the international market, the yellow metal surged to a fresh record above $4,060 an ounce after logging its eighth straight weekly advance on Friday. Silver hovered near record levels as a historic short squeeze in London and renewed U.S.-China trade friction roiled markets. Meanwhile, concerns over potential White House tariffs on other precious metals drove platinum and palladium sharply higher.

The ongoing U.S. government shutdown, now entering its third week, has delayed key economic data releases, adding to investor caution and market volatility.

Non-yielding bullion has jumped 54% year-to-date, buoyed by geopolitical risks, robust central bank purchases, strong inflows into exchange-traded funds (ETFs), expectations of U.S. rate cuts, and tariff-related economic concerns. Central bank accumulation and a global shift toward safe-haven assets, facilitated through ETFs, continue to underpin gold and silver prices.

“The sustained momentum in gold is supported by the U.S. government shutdown concerns and the growing ‘de-dollarization’ theme, which continue to boost safe-haven demand,” said Jateen Trivedi, VP Research Analyst – Commodities and Currencies, LKP Securities.However, analysts cautioned that profit-taking and emerging geopolitical clarity — including President Trump’s recent announcement of a ceasefire between Israel and Hamas — could test the current rally’s strength.

How to trade gold?

“Adding to market jitters, the US government shutdown has stretched into another week, leaving markets without several key economic indicators needed to assess the health of the economy. Still, traders widely expect the Federal Reserve to deliver additional 25bps rate cuts at each of its remaining meetings this year. On the geopolitical front, Trump said on Sunday that the Gaza war has ended as he heads to Israel. MCX Gold December may rise to Rs 1,22,500/10g and Rs 1,21,500/10g is a good support,” Jigar Trivedi of Reliance Securities said.

Gold rates in physical markets

Gold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 92,080/8 grams, while pure gold (24 carat) prices stand at Rs 1,00,440/8 grams.

Standard gold (22 carat) prices in Mumbai stand at Rs 91,960/8 grams, while pure gold (24 carat) prices stand at Rs 1,00,320/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 92,200/8 grams, while pure gold (24 carat) prices stand at Rs 1,00,584/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 91,960/8 grams, while pure gold (24 carat) prices stand at Rs 1,00,320/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)