Gold price reaches close to one lakh, rise of Rs 1899 in early trade

At the same time, international gold futures reached a new peak of $ 3,504.12 an ounce. Later, it increased by $ 65.42 or 1.91 per cent to $ 3,490.72 an ounce. Analysts said gold prices have jumped due to concerns over US monetary policy after President Donald Trump unveiled plans to reform the Federal Reserve.

Rahul Kalantri, Vice President, Commodities, Mehta Equities Limited, said that amid uncertainty in global financial markets and the escalation of the US-China trade war, gold prices crossed the level of $ 3,500 per ounce in international markets for the first time and also crossed the level of $ 97,000 in domestic markets.

Amid uncertainty in global markets, gold prices witnessed a lot of volatility. Kalantri said that the dollar index fell to a 3-year low after a dispute between US President Trump and Federal Reserve Chairman Jerome Powell over interest rate cuts.

US President Trump asked the Federal Reserve to cut interest rates. He said that if interest rates are not cut immediately, the US economy may slow down. On Friday, White House economic adviser Kevin Hassett said that President Trump and his team are studying whether they can remove Fed Chairman Jerome Powell. Last week, Federal Reserve Chairman Jerome Powell said the central bank was not inclined to cut interest rates in the near future, citing potential inflationary pressures and economic uncertainties resulting from new tariffs.