The gold price on Monday topped a fresh all-time high in the domestic futures market as uncertainty over US President Donald Trump's tariff policies increased demand for the yellow metal as a safe haven investment.
As per India Bullion and Jewellers Association, price of 24-carat gold was Rs 8,537 per gram, 22-carat gold was at Rs 8,332 per gram.
On the Multi Commodity Exchange (MCX), gold futures for April 4 expiry touched an all-time high of Rs 85,384 per 10 grams in early trade.
The same contract was trading 0.51 per cent higher at Rs 85,325 per 10 grams.
The international market has also kept the gold prices at near record levels due to rising fears of a global trade war. Last week, spot gold touched a fresh peak of $2,886.62 an ounce.
Uncertainty over the latest trade decisions by Trump has driven investors into gold, as it is normally seen as a safe investment when there is a feeling of economic and geopolitical uncertainty.
Trump intends to impose 25 per cent tariffs on all steel and aluminum exports to the United States.
He was going to make the formal declaration later on Monday in US time. Trump may proceed to enforce further tariffs on a number of countries.
The trade policies have alarmed inflation in the US, which is likely to prevent a decrease in interest rates by the Federal Reserve in the near term.
Meanwhile, the gold reserves in India went up by $1.242 billion to $70.893 billion in the previous week, according to the Reserve Bank of India (RBI) data.
The apex bank said that the Special Drawing Rights (SDRs) were also up by $29 million to $17.889 billion.
Meanwhile, the rupee opened at a record low with falling by 49 paise to 87.92 against the US dollar on Monday, compared to its closing value of 87.43 on Friday.
Read also| Trump Vows 25% Tariffs on Steel, Aluminum Imports, Warns of More to Come
