Gold price today: Gold rates surged by nearly ₹3,000, or almost 2%, on the MCX on Wednesday (January 21) morning to hit a fresh record high, fueled by US-EU trade war fears, dollar’s weakness and strong retail demand.
MCX gold February futures hit a record high of ₹1,53,316 per 10 grams, while MCX silver March futures rose by 0.50% to ₹Rs 3,25,260 per kg.
The United States (US) and the European Union (EU) are on the cusp of a major trade war that could have serious ramifications for the global economy and potentially even upend the NATO alliance.
As per media reports, the European Parliament may soon announce the suspension of approval of the US trade deal agreed in July.
Furthermore, US President Donald Trump said on Tuesday that he would not back down from his push to acquire Greenland, according to news agency Reuters.
Trump has announced a 10% tariff on eight European countries—Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland—from February 1, and threatened these tariffs would be raised to 25% from June 1, 2026.
European countries are reportedly considering activating the anti-coercion instrument, a trade defense mechanism designed to counter economic pressure from foreign governments.
The tussle between the US and EU is keeping investors nervous, driving them to safe-haven assets like gold. The US dollar has also weakened due to selling by traders and importers. This has also supported gold’s ascent.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
