Gold prices are trading around ₹88,800 per 10 grams in India. In the previous session, gold prices closed at ₹86,010 per 10 grams and hovered around ₹85,998 on the MCX. Meanwhile, in the U.S., gold prices hovered around $2,941 per ounce.

Manav Modi, Analyst, Commodity Research at MOFSL, said, "Gold prices eased on Friday as investors booked profits from the previous session's record high but were set for an eighth straight weekly gain, driven by strong safe-haven demand amid concerns over U.S. President Donald Trump's tariff plans. Prices shattered two record highs last week, trading above $2,950, as uncertainties surrounding global economic growth and political instability underscored investor appetite for bullion."

Trump's latest tariff plans, announced earlier this week, include duties on lumber and forest products, in addition to previously announced plans to impose duties on imported cars, semiconductors, and pharmaceuticals.

Gold prices are influenced by several factors, with safe-haven buying playing a crucial role amid uncertainty surrounding Trump’s policies. Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL), said, "Investors often turn to gold as a hedge against potential economic instability and unpredictable policy changes. Central banks continue to buy gold as a strategic move to diversify their reserves and reduce reliance on the US dollar. Geopolitical tensions further drive demand for gold, as investors seek security in times of conflict and global instability."

Six key factors driving gold prices higher:

Safe-haven buying amid policy uncertainty:

Investors are turning to gold as a hedge against economic and policy instability under Trump's administration.

Global monetary easing:

Lower interest rates and stimulus measures worldwide boost gold’s appeal as a store of value amid weakening fiat currencies.

Central bank purchases:

Central banks continue to accumulate gold to diversify reserves and reduce dependence on the US dollar.

Geopolitical tensions:

Heightened global conflicts and uncertainty increase demand for gold as a traditional refuge asset.

Increased ETF inflows:

Rising investments in gold-backed exchange-traded funds (ETFs) reflect strong market confidence in gold’s long-term value.

Inflation concerns:

Expectations of rising inflation prompt investors to seek gold as a hedge against eroding currency value and purchasing power.