New Delhi, March 13: Gold prices have reached an all-time high, with 24-carat gold futures for April trading at Rs 86,875 per 10 grams on the Multi Commodity Exchange (MCX), reflecting a 0.21% increase.
The surge in gold prices is largely attributed to global instability, particularly concerns over U.S. President Donald Trump's tariff policies, which have prompted investors to seek the security of gold. As a result, the international price of gold soared to $2,945 per ounce on March 13.
According to the Indian Bullion Jewellers Association (IBJA), the spot price of 24-carat gold in India stood at Rs 86,670 per 10 grams, while 22-carat gold was priced at Rs 84,590 per 10 grams. The prices for 20-carat, 18-carat, and 14-carat gold were Rs 77,140, Rs 70,200, and Rs 55,900 per 10 grams, respectively.
Experts believe that ongoing trade tensions and tariff uncertainties are driving investors toward gold. Additionally, the decline in inflation in the U.S. is further supporting higher gold prices. Lower inflation increases the likelihood of interest rate cuts, which boosts gold’s appeal as an investment.
Recent U.S. data revealed inflation at 2.8%, lower than the expected 3%, which analysts predict will impact gold prices in the coming weeks. A commodities and currency research analyst at LKP Securities noted that the inflation figures will likely influence the U.S. Federal Reserve’s interest rate policies.
Moreover, robust inflows into gold exchange-traded funds (ETFs) are contributing to the positive market sentiment. Trade war concerns have further fueled the gold rally. Earlier this month, President Trump imposed a 20% tariff on Chinese goods and a 25% tariff on imports from Mexico and Canada. These moves have heightened fears of global economic instability, prompting more investors to turn to gold as a safe-haven asset.
