Gold prices surge past ₹88,000 as global uncertainty fuels rally, Comex rises above $2,900

Gold prices went up and crossed ₹88,000 per 10 grams in India. But earlier on Tuesday, prices hovered around ₹85,200 on the MCX. Meanwhile, in the U.S., gold prices on the Comex market closed higher on Monday, above $2,911 per ounce. This happened because investors were worried about U.S. trade policies and wanted to invest in gold, which is considered safe during uncertain times. Since Monday was a holiday in the U.S. (Presidents' Day), trading was slow, but concerns grew as President Trump’s new tariff plans led to threats from Europe, raising fears of a trade war.

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said, "Today, Comex gold is trading above $2,925 as investors continue to monitor tensions between the U.S. and European Union, as well as developments in Ukraine peace talks."

"Additionally, a weaker dollar supported bullion prices after soft U.S. retail sales data revived expectations of potential Fed rate cuts. Investors are now awaiting release of the FOMC meeting minutes for any hints on future policy, as Fed Chair Powell and other officials have recently stated that the central bank is not in a rush to cut rates. Philadelphia Fed President Patrick Harker and Governors Michelle Bowman and Christopher Waller have all emphasized a steady policy approach, with Bowman noting a gradual decline in inflation but ongoing risks, and Waller advocating for holding policy until inflation clearly falls," she added.

WTI crude oil prices saw a sharp rise yesterday, reaching $71.40 per barrel, following Ukrainian drone attacks on Russia's pumping station in the Krasnodar region, which disrupted exports through the key pipeline from Kazakhstan. Meanwhile, OPEC+ is reportedly weighing the option of delaying the planned increase in oil supply scheduled for April, despite calls from U.S. President Trump to reduce oil prices. However, Russian Deputy Prime Minister Alexander Novak clarified that OPEC and its partners have not yet discussed any such delay.

"In addition, oil exports from the semi-autonomous Kurdish region in Iraq are expected to resume by the end of March. Today, WTI oil remains stable as traders monitor any updates on the potential peace talks between Russia and Ukraine in Saudi Arabia," added Chainwala.