Gold and Silver Prices Surge Amid Fears of Major US-EU Trade War

The European Parliament may soon revoke its consent to the trade deal with the United States. This raises fears of a major trade war erupting between America and Europe.

The upward trend in gold and silver prices continues unabated. On Wednesday, both precious metals witnessed a significant surge. Gold is trading with substantial gains in the domestic futures market, having hit a new record high today. In early trading, the price of gold was seen trading at ₹1,55,886 per 10 grams on the MCX exchange, marking an increase of 3.53 per cent or ₹5,321.

Why is the surge in gold continuing?

This surge in gold prices is attributed to the apprehension of a trade war between the United States and the European Union, a weakening dollar, and strong retail demand. The US and the EU are on the brink of a major trade war, which could have a significant impact on the global economy. Furthermore, there are fears of the NATO alliance breaking apart. According to media reports, the European Parliament may soon revoke the agreement reached in July with the US on a trade deal. Meanwhile, Trump has stated that he will not back down from his intention to buy Greenland.

Significant surge in silver

Along with gold, silver prices have also seen a tremendous surge. In the domestic futures market, silver prices have crossed the ₹3.25 lakh mark. On Wednesday morning, silver futures were seen trading at ₹3,25,903 per kilogram on the MCX, an increase of 0.69 per cent or ₹2,231.

Global gold prices

Global gold prices are witnessing a significant surge. On Wednesday morning, global gold prices were seen trading at $4,847 per ounce on COMEX, an increase of 1.70 per cent or $81.20. Meanwhile, Gold Spot was trading at $4,842.80 per ounce, up 1.67 per cent or $79.37.

Global silver prices

In contrast to gold, global silver prices saw a decline on Wednesday morning. In early trading, silver prices were seen trading at $93.84 per ounce on COMEX, a decrease of 0.84 per cent or $0.80. Meanwhile, Silver Spot was trading at $94.08 per ounce, down 0.53 per cent or $0.50.