Gold prices hit new record amid uncertainties including US tariffs
Gold prices hit a new record high on Friday, surging past the INR 8965/-mark per 10gm for 24 carat gold ( $3,000 per ounce mark).
Meanwhile, gold ornament prices in India that is 22 carat was 8220/ per 10 gm whereas China’s gold jewelry brands Chow Sang Sang and Lao Miao Gold both passed 900 yuan ($124.3) per gram.
Analysts attributed the price surge mainly to the US dollar and it’s unilateral tariff policies, which raised uncertainties worldwide and prompted investors to turn to gold, a traditional safe-haven asset.
COMEX gold futures increased 0.37 percent, settling at $3,002.5 per ounce as of press time on Friday. Spot gold in London also rose 0.1 percent, standing at $2,989.53 per ounce.
The price of Chow Sang Sang’s pure gold jewelry is 907 yuan per gram, and Lao Miao Gold’s pure gold price has reached 903 yuan per gram.
With the price of gold at a new record high, the total market capitalization of gold reached $20.13 trillion, the top largest asset in the world, representing an increase of about $6 trillion compared with last year’s March, market capitalization ranking network Companies Market Cap showed on Friday.
Demand for gold as a safe-haven asset has increased significantly as the US’ trade policies have sparked market uncertainty.
In a note to clients on Wednesday, BNP senior commodity strategist David Wilson said the US’ issuing a slew of tariff threats and the realigning of international relationships have added a new layer of macroeconomic and geopolitical uncertainty, providing a significant boost to gold, according to a report by Yahoo Finance.
Tariff-related uncertainty is fueling a flight toward safety and the uptick in gold, with “nowhere to hide but park cash in the shiny metal posting all-time highs,” Mizuho analyst Robert Yawger said, according to media reports.
Moreover, US February inflation data was below expectations, with the year-on-year CPI growth rate reaching its lowest level since November last year.
This development has temporarily alleviated concerns about stagflation in the US and created room for the Federal Reserve to implement interest rate cuts, analysts said.
Expectations on the US Federal Reserve’s rate cuts strengthened, weakening the attractiveness of the US dollar and reducing the cost of gold holdings.
This promoted funds into the gold market. Moreover, central banks worldwide are significantly increasing their gold purchases to hedge against dollar-related risks, driving gold to become a diversified investment tool.
According to the World Gold Council, central banks reported 18 tons of net purchases at the start of 2025. Emerging market central banks remain at the forefront of net buying, with Uzbekistan, China and Kazakhstan the top three buyers.
The World Gold Council noted that central banks continue to play a pivotal role in global gold demand, with their purchasing patterns influenced by both economic and geopolitical shifts.
Many central banks appear to have strategically leveraged temporary price pullbacks as buying opportunities, while sales have remained limited and largely tactical during price rallies.
“Gold is in a secular bull market. We forecast prices to trade between $3,000-$3,200 this year,” said Alex Ebkarian, chief operating officer at Allegiance Gold, according to Reuters.
Gold’s burgeoning safe-haven allure may see it surge to a record high of $3,500 an ounce during the third quarter, according to Macquarie Group analysts, Bloomberg said.
The World Gold Council predicted a moderate but positive growth outlook for gold prices in 2025. “Upside could come from stronger than expected central bank demand, or from a rapid deterioration of financial conditions leading to flight-to-quality flows,” read WGC’s report on Gold Outlook 2025.
The future prices of gold depend mainly on the US interest rate policy and geo-events in the short term, and monetary system restructuring and US sovereign credit risk in the long term and of course the demand of gold jewellery by Indian Women.
