Prime Highlights
- Gold prices hit an all-time high of ₹98,100 per 10 grams in India, up by ₹1,650 in a day.
- The rally was driven by tensions in the global economy, especially between the US and China, and a weakening US dollar.
Key Facts
- Silver prices also increased by ₹1,900 to ₹99,400/kg.
- International gold prices briefly touched $3,318/oz.
- India’s gold futures hit an all-time high of ₹94,781 on MCX.
Key Background
Gold prices in India registered an all-time high increase on April 16, 2025, to ₹98,100 for 10 grams in Delhi. This one-day record rise of ₹1,650 is attributed mainly to fresh global demand for gold as a safe haven amidst increasing geopolitical and economic uncertainty. The chief force behind the spurt is the growing United States-China trade war that has sent shock waves through world financial markets.
The US government recently increased tariffs on a broad range of Chinese goods, raising duties to up to 245%. It also began investigating imports of critical minerals, further ratcheting up tensions. These measures have helped fuel increased market volatility, and investors globally have sought refuge in safer assets like gold.
With the bullish mood, the US currency itself has shown significant weakness and was near two-year lows. A weaker dollar tends to make gold more affordable and attractive to investors in other currencies and hence pushes global demand upwards. Financial experts at institutional houses like Kotak Securities and Abans Financial Services noted that the weaker dollar and fear of trade wars are strong bullish indicators for gold.
Across the world, spot gold prices went up to a high of $3,318 an ounce before settling at around $3,299.99. Silver also increased, with global prices moving up to nearly 2% during Asian trading hours. Locally, June delivery MCX gold futures opened at ₹94,781 before settling at ₹94,768 — still recording a gain of over ₹1,300 with high trading interest.
Besides, flows into gold-backed exchange-traded funds (ETFs) and continuous central bank purchases also contributed to the rally. Banks and commodity research teams are optimistic about the outlook for gold in light of the current macroeconomic landscape.
With the wedding and festival seasons in India on the horizon — traditionally strong periods for gold buying — domestic demand may still be firm. Barring a dramatic shift in sentiment at the global level or geopolitics, gold prices ought to remain high in the short term.
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