Gold prices for the first time crossed ₹90,000 per 10 gm in India in line with the surge in the price of the yellow metal because of fears of the fallout of the trade war.
On Monday, gold future prices rose more than 1.5% on the MCX.
In the international market, gold price went past $3,125 an ounce to a record high in the January to March quarter, gaining nearly 19%, marking its second-strongest quarter since 1986, when it surged 22.93%.
According to analysts, the rally is largely driven by inflation concerns stemming from U.S. tariffs. U.S. President Donald Trump’s reciprocal tariffs will be effective on April 2.
Sachin Jain, Regional CEO, India, World Gold Council, said gold’s momentum had seen prices rise to historic highs, currently at ₹90,000 for 10 gm.
“While these high prices seem to have a temporary impact on the jewellery demand, the gold investment demand on the other hand, continues to drive the market, as record domestic prices and inflows into gold ETFs, digital gold, coins and bars reiterate gold’s appeal,” he said.
Prithviraj Kothari, managing director of RiddiSiddhi Bullions Ltd., said: “Gold prices have been rising since December 18, which is a result of multiple concurrent worries. The execution of Mr. Trump’s tariff policies, inflation pressures, the expanding U.S. fiscal debt, and geopolitical concerns in West Asia and Ukraine have all influenced market movement.”
“Due to these factors, gold futures have risen by an astounding 17%, from about $2,620 to $3,065. It seems prices are topping out in the short term, we could see profit booking and 3-4% price retracement at these levels. But this retracement should be used as a buying opportunity.”
Published – March 31, 2025 09:21 pm IST
