Gold crosses ₹95,000 for the first time to hit a new record high as dollar weakens and trade war persists

Gold hit a new record high of ₹95,435 per 10 gram on the Multi Commodity Exchange (MCX) on Wednesday, April 16, following a weakening dollar and the continuing uncertainty of US President Donald Trump’s tariff war.

This was the first time it breached the ₹95,000 mark and this was a 2.12% gain from the previous close, which was at ₹93,451.

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As of 2:45 pm, the yellow metal had pared some of its gains, trading at ₹95,090. Meanwhile, the low for today so far was ₹94,311.

Silver meanwhile, hit a high of ₹96,965 per Kg, which was an increase of 2.31%. As of 2:45 pm, it had gone down to ₹96,500 and previously hit a low of ₹94,666.

One of the reasons why this came about was the US dollar weakening by 0.65%, as per data from Bloomberg's Dollar Index Spot.

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Gold has traditionally been viewed as a safe-haven asset, especially during times of geopolitical and economic uncertainties.

In the international market, Spot gold was up 2.7% to $3,314.29 an ounce after hitting a record high of $3,317.90 earlier in the session. US gold futures meanwhile, gained 2.8% to hit $3,330.30.

"Trump's trade war shows no signs of easing after the President ordered a probe into critical minerals, semiconductors and pharmaceuticals, sparking a fresh move towards safe havens and out of stocks," a Reuters report quoted Ole Hansen, head of commodity strategy at Saxo Bank, as having said.

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"We are upgrading (gold forecast) to $3,500 supported by a world in disarray where investors seek shelter amid recession fears, geopolitical tensions, fiscal debt concerns and central banks diversifying their holdings away from USD and dollar-based assets," he added.