In a significant rise, gold prices in India have reached unprecedented levels. In Delhi, the price of 10 grams of pure gold surged by ₹2,430, hitting a record high of ₹88,500. Just a week ago, the price for 10 grams of 99.9% pure gold was ₹86,070, marking a notable increase of ₹2,000. The All India Sarafa Association attributed the hike in prices to international developments and the depreciation of the rupee.
Internationally, spot gold has crossed the $2,900 per ounce mark. The surge in gold demand was triggered by U.S. President Donald Trump’s announcement of a 25% tariff on aluminum and steel imports. This move has heightened concerns of a trade war, further bolstering gold’s appeal. On commodity exchanges, the April delivery gold contract rose by ₹940, reaching ₹85,828. Meanwhile, silver prices also increased by ₹1,000 per kilogram, reaching ₹97,500.
Trump’s Trade War Announcements Affect Gold Prices
President Trump’s ongoing trade war announcements are having a significant impact on both global stock markets and gold prices. His recent decision to impose a 25% tariff on aluminum and steel imports has contributed to growing market uncertainty. Although there is no clarity on which countries will be impacted or when the tariffs will be enacted, his statements have sparked fresh concerns of a trade war. In this volatile environment, gold has once again seen a spike in demand, with analysts attributing the rise to fears of inflation and slower economic growth. Experts suggest that if gold crosses the $3,000 per ounce mark internationally this year, it would not be unexpected.
