Gold prices surged amid global uncertainties and strong investor demand. In India, gold breached the ₹87,000 per 10-gram mark. On Monday, gold prices on the MCX hovered at an intraday low of ₹86,306 per 10 grams. In the international market, prices stood around $2,918.40 per ounce.

This has been a week since the price of the yellow metal has been rising.

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL), said, "Gold has started its upward trajectory, sustaining above $2,910 (₹86,000), and there is a lot of uncertainty over the U.S. tariff war."

U.S. President Donald Trump announced on Sunday that he would introduce new 25% tariffs on all steel and aluminium imports into the U.S. He added that reciprocal tariffs would be imposed on all countries, matching their tariff rates. This move bolstered gold’s safe-haven appeal at the start of the new week.

Moreover, concerns that Trump's protectionist policies could reignite inflation in the U.S. have further strengthened gold’s status as a hedge against rising prices. Kothari said, "We are likely to see this rally continue in February, with expectations of gold prices reaching $3,000 (₹87,500) in the next few days."

Manav Modi, Analyst, Commodity Research at MOFSL, noted, "With President Trump’s interest in taking over Gaza for development, the ceasefire deal between Israel and Hamas looks slightly uncertain. Meanwhile, supply panic continues to build as another 900K ounces were deposited in COMEX vaults, signaling that the squeeze is still ongoing. The dollar index has also inched higher after hitting a recent low of ~107.40 and is currently hovering around 108.50, capping some of gold’s gains. On the data front, market participants will keep an eye on U.S. retail sales, industrial production, and inflation data scheduled for later this week. Focus will also be on Governor Powell’s testimony."