Gold prices have breached Rs 80,000 per 10 grams levels in major Indian cities, recovering from the impact of Donald Trump's expected high tariff trade policy and a firm US dollar, analysts said. A flare-up in geopolitical tensions due to the Russia-Ukraine war is bolstering the precious metal, which crossed the USD 2,700 an ounce level in global markets, they added. The uncertainty surrounding the US economy and volatile stock markets are also driving inflows into the safe-haven, however, the US Federal Reserve's (Fed) cautious attitude towards policy interest rate and strong US dollar are acting as headwinds for the bullion, analysts stated. On the Multi Commodity Exchange (MCX), gold prices tanked Rs 6,775, or 8.5 per cent, to hit Rs 73,000 per 10 grams after Donald Trump's victory raised expectations of a restricted trade policy by the US. "Gold prices had fallen 8 per cent after the US election results. "The strengthening US dollar index which rose from USD 101 to 107.5 press
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In New Delhi, gold price stands at Rs 50,020 per 10 gm (24 carat)
Demand is expected to jump closer to the 690 tons bought in 2019 as the country's economy shows signs of recovery, P R Somasundaram, managing director at the council for India, said
Holdings in the SPDR Gold Trust, the world's largest gold-backed ETF, rose to 1,009.70 tonnes on Monday, the highest since June 2013
The fund's inflows since the beginning of the year have already surpassed outflows for the whole of 2015