Gold breaks new record: prices rise for second consecutive time on March 19

In the domestic futures market, gold prices set a new record for the second consecutive day on Wednesday, March 19, 2025. Increasing stress in the Middle East (Middle East) and increasing uncertainty over US President Donald Trump’s economic impact of tariff policies has further strengthened gold as a ‘safe investment’. MCX Gold (April 5 contract) prices rose 0.20% to a new record level of ₹ 88,890 per 10 grams.

Gold prices in the international market also remain close to record levels due to middle East crisis and concerns related to American tariff policies. Investors are increasing investment in it, considering gold as a safe investment, giving support to its prices.

Middle East Tension: Impact on gold prices

Increasing stress between Israeli and Palestinian Militant Group Hamas has further increased uncertainty globally, causing a rise in gold prices.

• According to the Reuters report, more than 400 people have died in Israeli air strikes.
• This growing struggle has weakened the possibilities of the ceasefire.
• Israel has announced to take more military action to get rid of the hostages in Hamas’s possession.

Due to this geopolitical tension, investors are increasing investment in gold by distance from the stock market and risky assets, giving support to its prices.

Especially watching the policies of US Fed

Now investors are eyeing the monetary policy of the US Federal Reserve (US FED) and the economic development and inflation of Fed Chair Zerome Powell.

• Donald Trump’s aggressive tariff policies have increased economic uncertainty.
• Experts hope that no one will cut the interest rates at the moment.
• If the Federal Reserve changes interest rates, it can affect gold prices.

Updates on Fed’s policy can give more volatility in the market.

Buy gold, hold or book profit?

Gold prices are currently making new records, but the question for investors remains whether they should do shopping, hold, or book profit?

Experts’ opinion:

• The gold outlook over the middle East crisis and the American tariff policies is currently positive.
• However, booking some profit before the policy announcement of US Fed can be a sensible decision.
• Investors who want to take long-term positions can wait for the results of the FOMC meeting and shop on any correct dip (decline).

Major factors affecting gold prices

Gold prices fluctuations depend on many factors, including:

1. Us Federal Reserve’s interest rate policy – If interest rates increase, gold prices may decrease.
2. Balance of global growth and inflation – Investors consider gold to be safe when inflation increases.
3. Dollar index fluctuations-Gold prices rise due to dollar weakening.
4. Gold purchases of central banks – Central banks of many countries are increasing gold stock, increasing prices.
5. Geophysical Risk-Gold demand increases during war and global crises.