The spot price of 24 karat gold in India stood at ₹97,310 per 10 grams, while 22 karat gold was priced at ₹89,200 per 10 grams and 18 karat gold at ₹72,990 per 10 grams, as per data from Goodreturns.
The surge comes even as global prices
saw a slight dip in early trade due to profit booking.
Spot gold was trading at $3,339.37 an ounce, down 0.1%, after hitting a record high of $3,357.40 per ounce earlier in the session.
US gold futures were up 0.2% at $3,351.50 an ounce.
Analysts believe the recent dip is a temporary correction after an extended rally. Gold has already gained over 3% this week alone and more than 27% so far this year, as investors seek refuge from the volatility in equity markets, rising inflation, and intensifying geopolitical tensions.
Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services, said gold’s record-breaking momentum is being driven by a combination of a weakening dollar, slowing US growth, and the escalating trade standoff between Washington and Beijing.
“Bullion remains heavily supported by uncertainty around tariff announcements and fears about growth slowdown,” he said.
Modi also pointed to Fed Chair Jerome Powell’s cautious tone in a recent speech, where he acknowledged signs of a cooling economy and reiterated the Fed’s willingness to adapt policy depending on future data.
Nikos Tzabouras, Senior Market Analyst at Tradu.com, noted that “everything is going gold’s way, propelling prices to all-time highs. Although pullbacks are reasonable, the precious metal is poised for further gains as trade bedlam continues.”
He added that the dollar’s diminishing status as a safe-haven asset is further strengthening gold’s appeal, especially in the wake of US President Donald Trump’s latest announcement ordering a probe into new tariffs on all critical minerals imports.
This follows earlier restrictions on pharmaceutical and semiconductor imports, heightening fears of a prolonged trade war.
Further compounding concerns, China has reportedly ordered its airlines to halt further deliveries of Boeing aircraft, signaling escalating retaliation.
The dollar index, which had already hit a three-year low last week, continues to remain under pressure, making gold more attractive for non-dollar holders.
According to analysts at ANZ, while the rally appears steep, the overall trend remains upward.
“We maintain our bullish stance on gold, though a pull-back towards $3,050 per ounce looks possible after a recent swift price rally,” the team wrote in a note.
In a report shared by Axis Securities, the firm noted that persistent uncertainty surrounding US trade policy and declining demand for the dollar and Treasury securities have reinforced gold’s status as a preferred safe-haven investment.
–With Reuters inputs
