Gold prices surged to new record highs recently, Reaches 85,000Rs
Gold prices surged to new record highs recently, Reaches 85,000Rs
Gold prices surged to new record highs recently, driven by several key global factors. On February 3, 2025, the price of gold in India reached an all-time high of Rs 82,840 per 10 grams on the Multi Commodity Exchange (MCX), while silver also experienced a significant increase, jumping nearly Rs 800 to reach Rs 93,875 per kilogram. This rally came as global uncertainty and tensions around trade wars, especially following the United States’ aggressive tariff policies, drove investors to seek safe-haven assets like gold and silver.
The primary catalyst behind this surge is the growing fear of a potential escalation in global trade tensions, particularly the United States’ imposition of tariffs. President Donald Trump’s administration recently enforced a 25% tariff on Canadian and Mexican imports and a 10% tariff on Chinese goods. These moves not only raised concerns about global economic stability but also triggered fears of a broader trade war, including potential tariffs on the European Union. As a result, investors began flocking to gold, a traditional safe-haven asset, boosting demand and prices.
Additionally, the strength of the US dollar played a crucial role in the rise of gold prices. The US dollar index saw significant gains as a direct consequence of these tariff impositions, which strengthened the currency and further contributed to gold’s upward movement. A stronger dollar tends to make gold more expensive in other currencies, encouraging international buyers to increase their holdings in the precious metal.
Domestic factors also contributed to the rise in gold prices in India. The depreciation of the Indian rupee against the US dollar added further pressure on gold prices. With international gold prices climbing and the rupee weakening, gold became more expensive in the Indian market, prompting an increase in demand from local investors and jewellers. As a result, the price of gold in the Indian capital, New Delhi, reached Rs 85,300 per 10 grams, marking a fresh record high. Traders indicated that jewellers and stockists continued to stockpile gold in anticipation of future price increases, further fueling the surge.
Analysts pointed to ongoing uncertainties in global trade as a major reason behind the continued buying of gold. Jateen Trivedi, a vice-president at LKP Securities, emphasized that as concerns over a potential “Trade War 2.0” persisted, market participants were increasingly turning to gold as a reliable store of value. The economic tensions caused by the tariffs, combined with the possibility of future trade disruptions, have created an environment of heightened uncertainty. As a result, gold has become a go-to asset for investors looking for stability during these turbulent times.
Meanwhile, in the international market, gold was trading at $2,805 per ounce, marking a slight increase of 0.29%. Silver, which also tends to follow gold’s price movements, was holding steady at $31.35 per ounce. As gold and silver prices continue to see volatility, experts predict that they will remain supported by the broader economic uncertainty. However, analysts have noted that the outlook remains heavily tied to the ongoing developments in global trade and the US dollar’s strength.
Looking ahead, analysts believe gold’s upward trajectory could continue. According to Trivedi, gold’s next target price in India could be Rs 83,000 per 10 grams, with support levels at Rs 81,500. On the international front, gold’s resistance levels are expected to be between $2,817 and $2,832 per ounce, while silver’s resistance is pegged at $31.65-$31.80 per ounce. In terms of the Indian market, gold’s support levels are seen at Rs 81,980-81,710, and resistance levels at Rs 82,070-82,350, while silver’s support ranges between Rs 92,710-92,050, with resistance at Rs 93,980-94,570.
Gold Price Update
With global trade tensions continuing to mount and uncertainty remaining high, it appears that the price of gold will stay elevated, driven by ongoing demand from investors seeking a hedge against economic instability. Whether this trend will continue or if the market will stabilize in the near future depends largely on how trade negotiations unfold and the actions taken by the US and other major economies.
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