Gold prices soar to new highs! ₹93,625 in India, $3,132/oz Globally – What’s fueling the rally?

Gold prices in India hit a record ₹ 93,625 per 10 grams in Ahmedabad on Tuesday 1 April 2025. Globally, gold is trading at all-time highs, with MCX gold at ₹90,717 in the previous closing session. International gold prices stand at $3,132 per ounce as of 14:00 PM (IST).

Colin Shah, MD, Kama Jewellery, said, “Gold prices have touched a new high in today's early trading session. The yellow metal's price surged to a record high of $3,120 levels. The price rise is primarily due to uncertainty over the US tariff policy. The uncertainty around the latest announcements by the US regarding the trade tariffs is pushing up the gold prices. The US President has declared that tariffs will be imposed on essentially all countries by this week. Following this, investors across the globe are diverting funds towards safe-haven assets like gold to tide them through these uncertain periods."

"Moving forward, gold prices are set to touch levels of $3,250 by 2025-end, which will be supported by key factors such as trade tariffs by Trump, a weak US Dollar, and escalating geopolitical tensions between Russia and Ukraine as well as rising tension in the Middle East," said Shah.

Investor demand for safe-haven assets has intensified amid global uncertainties, particularly in the Middle East and Ukraine. Additionally, persistent inflation concerns and a weaker U.S. dollar have strengthened gold’s appeal. Central banks, especially in China and India, have been aggressively adding to their gold reserves, further tightening supply.

In India, the rally is also influenced by a weak rupee, making imported gold more expensive. Analysts expect continued bullish momentum, with gold remaining a preferred hedge against economic instability. They said that if these macroeconomic trends persist, gold could continue its upward trajectory. However, short-term fluctuations are expected due to profit-booking and shifting market sentiment.

Investors must closely watch global cues to gauge the future direction of the precious metal as the precious metal continues its record-breaking run.