Gold hits lifetime high at ₹83,100 amid uncertainty over Trump's tariff policies

Gold rally shows no signs of slowing down, with prices climbing by ₹200 to cross the psychological mark of ₹83,100 per 10 grams to hit the lifetime high on Friday. The current rally, which extended for the eighth consecutive session today, can be attributed to increased buying in the wake of uncertainty around the Trump administration's policies on international tariffs.

The precious yellow metal had closed at ₹82,900 per 10 grammes on Thursday. The All India Sarafa Association data shows gold with 99.9 purity hitting ₹83,100 per 10 gm on Friday. Silver also saw a surge of around ₹500 to trade at ₹93,500 per kg on Friday.

The global sale of gold, which saw its best annual performance in over a decade in 2024, will continue to have a positive but much more modest growth for gold in 2025, says the World Gold Council (WGC).

The gold price increased by more than 28% y-t-d in US dollars as of December 13, 2024, trading 22% higher on average this year than during 2023. Gold outperformed most major asset classes in 2024 due to investment demand, especially through over-the-counter transactions and was supported by an undercurrent of geopolitical risk and volatility in many regional financial markets. Central banks continued to add gold to reserves, which picked up speed in early October. And, for most of the third quarter, Western investors flocked back to gold as central banks started cutting interest rates, the UK-based World Gold Council, which tracks gold sales globally at the wholesale level, said.

“Gold is having a record-breaking year due to a confluence of factors, driving the gold price and demand to record levels. And while the current consensus on global economic performance suggests that gold could move sideways, the uncertainty surrounding the geopolitical landscape could provide a springboard for gold next year,” says Juan Carlos Artigas, global head of Research, World Gold Council.

Artigas says 2025 is set to be marked by evolving fiscal and economic policies, which may result in shifting global dynamics. For gold, 2025 will be a tale of two halves -– as there can be more risk-on appetite as people wait for strategic and tactical drivers to unravel, leading to more clarity and direction for gold’s performance later in the year. If there is a significant drop in interest rates or a marked increase in market volatility, it may further fuel investor interest. Global central bank demand and Asian markets are likely to continue buying of gold, says the expert. The WCG says that demand from China and India (the gold’s largest markets) will have a big influence, as Asia makes up more than 60% of annual demand (excluding central banks).