World
India
Gold continues to dominate financial headlines as prices reach record levels globally. On Monday, international gold prices surged past USD 3,400 per ounce, marking a new all-time high. In India, gold prices on the Multi Commodity Exchange (MCX) neared Rs 97,000 per 10 grams, driven by persistent global uncertainties. The latest rally gained momentum from the Trump administration’s reciprocal tariffs plan, which has triggered fears of countermeasures. Analysts have noted a consistent upward trend in gold prices, as investors increasingly turn to safe-haven assets amid heightened geopolitical and economic risks.
Trade Tensions Boost Gold Demand
The recent spike in gold prices follows a broader trend in 2025, during which gold has appreciated by over 20 percent. Over the past year, the precious metal has gained around 40 percent, according to publicly available data. Motilal Oswal Financial Services Ltd (MOFSL) stated in a report last week that the rally stems from “a combination of heightened geopolitical risks, trade tensions—particularly between the U.S. and China—and a surge in safe-haven demand from both institutional and retail investors.”
Central Banks And Weaker Dollar Support Gold
Tata Mutual Fund reported that central banks’ increasing gold purchases continue to support the price rally. “With the Trump administration favouring a weaker dollar and the uncertain effect of tariffs, this could serve as an additional tailwind for gold,” the fund stated. It also highlighted that recessionary fears and trade disputes, stemming from “the Trump administration’s uncertain and ad hoc tariff policy,” have pushed investors toward gold.
Medium-Term Outlook Remains Positive
According to Tata Mutual Fund, gold prices are expected to remain firm in the medium term. The report cited “central banks’ buying, anticipated rate cuts, a weaker dollar, inflation, economic uncertainty arising from tariff uncertainty, ETF inflows, and geopolitical factors” as key contributors. “While short-term corrections are possible as gold prices have rallied more than 25 per cent in the past 6 weeks, historically this has taken 3-5 months, long-term fundamentals remain supportive,” it added.
(With Inputs From ANI)
