• Saturday, February 15, 2025

Business

Gold prices continue to rise amid global market uncertainties

The current rally is driven by uncertainty surrounding the potential US tariffs plan, especially with regard to China, Mexico, and Canada, and other policies from president Donald Trump

A woman tries gold ornaments at a jewellery showroom on the Dhanteras festival, in Nagpur, Tuesday, Oct. 29, 2024. (PTI Photo)

By: India Weekly

GOLD prices in India continue to rule above ₹83,000 as global market uncertainties have led to aggressive buying.

This is in line with the global markets, where spot gold prices held firm at around $2,830 per ounce.

Gold prices on Monday (3) jumped ₹400 to hit a fresh record high of ₹85,300 per 10 grams in the national capital on the back of continued demand by jewellers and stockists, according to the All India Sarafa Association.

The current rally is driven by uncertainty surrounding the potential US tariffs plan, especially concerning China, Mexico, and Canada, and other policies from president Donald Trump.

This has triggered safe-haven buying, as investors find the yellow metal a safe bet amid uncertain times.

Many central banks are also accumulating gold, thereby firming up its demand.

The strengthening of the US dollar index and the sharp depreciation in the rupee have also impacted the prices of gold and other commodities.

Another reason for the sharp rise in gold prices is the move by many bullion banks to shift their gold reserves from Asian hubs like Dubai and Hong Kong to the US to benefit from higher future premiums.

Related Stories