The market for gold in India witnessed an unprecedented surge, with prices reaching an all-time high of ₹96,805 per 10 grams. The surge in gold prices is attributed to a combination of factors including growing global trade tensions, a weakening U.S. dollar, and investors flocking to the safe-haven asset.

• Trade tensions between the U.S. and China
• Weakening U.S. dollar
• Investors seeking safe-haven asset

These factors have resulted in a sharp increase in international spot gold, with prices reaching a new record of $3,384 per ounce. The domestic market has closely followed these trends, with prices for gold rising by 1.65% on the Multi Commodity Exchange (MCX).

“Gold prices continued their positive momentum, briefly climbing above $3,400 per ounce,” said Pranav Mer, analyst at JM Financial Services. “Uncertainty around global tariffs, a softer U.S. dollar, and elevated U.S. bond yields are supporting high bullion prices.”

• Exchange-traded funds (ETFs)
• Anticipated festive season demand in India

Mer added that increased buying from exchange-traded funds (ETFs) and anticipated festive season demand in India are further propping up prices. Market participants will also be closely watching trade negotiations between the U.S. and major partners such as Japan, the Eurozone, and China, which could influence gold’s next moves. and major partners such as Japan, the Eurozone, and China, which could influence gold’s next moves,” said Pranav Mer. From a technical standpoint, Mer said gold now has support levels at ₹95,550 ($1,147) and ₹94,200 ($1,131), with the next resistance levels seen at ₹97,580 ($1,172) and ₹98,200 ($1,179). If the current momentum continues, analysts believe gold may soon breach the psychological ₹100,000 per 10 grams mark—equivalent to about $1,200—setting yet another milestone in the precious metal’s ongoing rally.

“The gold market is highly volatile and subject to various factors that can influence prices,” said Pranav Mer. “Therefore, it is essential to remain cautious and monitor market trends closely.”

The surge in gold prices is a reflection of the growing uncertainty in the global economy, which has prompted investors to seek safe-haven assets. The weakening U.S. dollar has also made gold more attractive to international buyers, increasing demand for the precious metal. As the global economy continues to navigate these challenges, gold prices are likely to remain volatile and subject to significant price fluctuations.
Overall, the surge in gold prices in India is a significant development, with prices reaching an all-time high. The combination of growing global trade tensions, a weakening U.S. dollar, and investors flocking to the safe-haven asset has resulted in a sharp increase in international spot gold, with prices reaching a new record of $3,384 per ounce.