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Gold has soared nearly 25% in the first four months of 2025, hitting all-time highs on both MCX and COMEX. Silver has followed with a 15% gain on COMEX. Motilal Oswal Financial Services Ltd (MOFSL) attributes the sharp rally to mounting geopolitical risks, intensifying U.S.-China trade tensions, and surging demand from institutional and retail investors alike. The bullion boom has found additional fuel from inflationary concerns and central bank buying. Despite a brief correction after U.S. President Trump’s latest tariff threats, gold rebounded swiftly—showing resilience and investor confidence amid market jitters.
Gold Price: Strong Support, Steep Resistance
MOFSL reported technical support for gold around ₹91,000 per 10 grams and resistance near ₹99,000 on MCX. On COMEX, key levels to watch include $3,100 per ounce as support and $3,400 as resistance. Silver continues to climb, but gold has clearly outpaced it in scale and momentum so far in 2025.
Central Banks Go for Gold
Emerging market central banks, particularly China, have steadily increased their gold reserves. This trend has added to demand and helped stabilize prices even as the US dollar has weakened by more than 7% against major currencies this year.
Fed Cautious As Trump Pushes For Cuts
Following three rate cuts in 2024, the U.S. Federal Reserve has shifted to a “wait and watch” approach. President Trump continues to push for additional rate cuts to boost growth, but Fed Chair Jerome Powell remains cautious. Powell has cited inflation risks from tariffs and broader economic uncertainty.
Safe-Haven Status Remains Intact
“In an environment dominated by policy uncertainty, inflationary pressures, and volatile geopolitics, gold continues to be a beacon of stability,” said Navneet Damani, Group Senior Vice President, Head Commodity and Currency Research at MOFSL. “Barring any significant resolution in global trade tensions, we maintain a ‘buy on dips’ view from a medium to long-term perspective.”
(With Inputs From ANI)
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