Gold Prices Jump to All-Time High as Investors Rush to Safety Amid Market Turmoil
Gold prices in India touched a historic milestone on Tuesday, breaching the ₹95,000 mark per 10 grams for the first time in the domestic futures market. The sharp rise was driven by a combination of global economic uncertainties, a declining US dollar, and strong safe-haven demand from investors.
Mumbai: Gold prices in India touched a historic milestone on Tuesday, breaching the ₹95,000 mark per 10 grams for the first time in the domestic futures market. The sharp rise was driven by a combination of global economic uncertainties, a declining US dollar, and strong safe-haven demand from investors.
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On the Multi Commodity Exchange (MCX), gold futures hit a record high of ₹95,090 before stabilizing around ₹95,000 by 1:04 pm, registering a 1.66% gain. Silver futures also followed suit, jumping 1.56% to ₹96,253 per kilogram after reaching an intraday high of ₹96,344.
Why Are Gold Prices Rising?
1. Weakening US Dollar Boosts Gold’s Appeal
A 0.5% drop in the US dollar index has made gold more attractive to investors holding other currencies. Since gold is priced in dollars, a weaker greenback typically leads to higher gold prices globally.
2. Economic and Geopolitical Tensions
Investor sentiment is being shaped by ongoing concerns about global growth and trade tensions, particularly due to fresh moves by the US administration. On Tuesday, President Donald Trump ordered an investigation into potential duties on mineral imports — a move widely seen as targeting China.
Additionally, the US has escalated its tariff war with China, now imposing a total tariff rate of 245% on Chinese imports. This has further fuelled market uncertainty, pushing investors towards gold as a safe-haven asset.
“Gold prices have surged to an all-time high today, fuelled by a lower dollar, trade war tensions, and concerns about global economic growth,” said Renisha Chainani, head of research at Augmont.
3. International Gold Prices Also Set Records
In the international market, spot gold rose by 1.7% to $3,282.88 an ounce during early trading, after hitting a new high of $3,290.10. US gold futures climbed 1.8% to $3,299.60 per ounce, further boosting domestic prices.
4. Growing Investment Demand for Bullion
Investment in gold-backed ETFs has also surged, with central banks continuing to accumulate gold amid rising inflationary fears.
“Chinese gold ETFs alone saw inflows of 29.1 metric tons in the first 11 days of April — already surpassing total Q1 inflows,” said Kaynat Chainwala, assistant VP (commodity research), Kotak Securities.
5. Bullish Forecasts Fuel Further Buying
Global financial institutions have projected further gains for gold. Goldman Sachs, for instance, expects gold to reach $4,000 an ounce by mid-2026, citing persistent economic uncertainty and strong demand.
Augmont also remains bullish, stating that sustained momentum in the June gold contract above $3,245 is likely to push prices towards $3,300 (₹95,000) and $3,320 (₹95,500) soon.
Silver, Platinum, and Palladium: Mixed Movements
In global markets, silver rose 0.5% to $32.45 an ounce, aligning with the bullish trend in gold. Platinum declined slightly by 0.3% to $956.80 an ounce, while palladium remained mostly flat at $971.24.
Augmont noted that silver could rally towards $33 (~₹95,500) and beyond in the coming week.
Outlook: Safe-Haven Assets in Spotlight
As global uncertainties persist and monetary policies remain in flux, analysts believe that precious metals like gold and silver will continue to attract investor interest. With both international and domestic markets showing strong momentum, further gains in prices could be on the horizon.
