Gold Glimmers Amid Trade Tensions: Soaring Prices and Safe-Haven Appeal

Amid escalating US-China trade tensions and a weakened US dollar, gold prices have reached record highs. The persistent rise, fueled by safe-haven inflows and strong demand, underscores gold's robust fundamentals. Analysts forecast gold's enduring appeal as global economic uncertainties persist.

In the wake of ongoing US-China trade tensions and a depreciating dollar, gold has solidified its status as a safe-haven asset, as prices reach unprecedented highs. The Multi Commodity Exchange of India (MCX) recorded gold prices at Rs 95,172 per 10 grams, briefly touching a peak of Rs 95,435. This surge reflects the increasing appeal of gold amid global uncertainties.

According to Manav Modi, Senior Analyst at Motilal Oswal Financial Services, the driving forces include the weaker dollar, heightened trade war tensions, and global economic uncertainties stemming from US President Donald Trump's tariff strategies. Globally, gold prices have exceeded USD 3,300 per ounce, indicating a broader trend.

Beyond geopolitical pressures, the international rise in gold prices is also bolstered by strong demand from central banks investing through ETFs. Gold's reputation as a reliable hedge against economic fluctuations has been reinforced, yielding spectacular returns. Official data highlights a 20% rise in prices in 2025 and a 40% increase over the past year, pointing to the metal's remarkable performance.

Sachin Jain, Regional CEO India at the World Gold Council, expressed confidence in the enduring strength of gold as an asset class. He confirmed that gold's robust fundamentals are expected to remain strong throughout the year, suggesting that the yellow metal will continue to attract investors navigating economic uncertainties. (ANI)

(With inputs from agencies.)