Gold prices today
International market
- Spot gold rose 0.4% to $3,221.70 per ounce as of 0245 GMT, after reaching a record high of $3,245.42 an ounce a day earlier.
- US gold futures also gained 0.4% to $3,237.60 per ounce.
India market (as per Goodreturns):
- 24 Karat (10g): ₹95,180
- 22 Karat (10g): ₹87,200
- 18 Karat (10g): ₹71,350
Why are gold prices rising?
Several global factors are pushing gold prices higher:
Tariff troubles
US President Donald Trump hinted at fresh tariffs on semiconductors and medicines, citing national security. The threat of broader trade restrictions is driving investors towards safer assets like gold.
Weak US dollar
The US Dollar Index fell below 100 for the first time in nearly three years, making gold cheaper for foreign buyers and boosting demand.
Global market volatility
Equities and US Treasuries are facing pressure as foreign investors react negatively to protectionist trade policies.
Low interest rates
Gold, which offers no yield, becomes attractive when interest rates are low. The US Fed is expected to hold rates steady amid policy uncertainty.
“Gold continues to firm today as investors seek defensive assets to manage portfolio risks,” said Yeap Jun Rong, market strategist at IG.
“With tariffs likely to stay in focus and the dollar on a downtrend, bullion may remain supported in the near term,” Yeap added.
The World Gold Council also reported higher inflows into Chinese gold ETFs, surpassing Q1 investments and even beating US-listed gold funds so far this month.
Outlook for gold
According to Augmont Goldtech’s weekly report, COMEX Gold Futures rose 7% last week, the best since March 2020. The year-to-date prices are up 22.5%, or $593.
Analysts predict that if the dollar continues to weaken, gold could reach $3,300 (~₹97,000 per 10 grams) per ounce soon.
However, the rally could face corrections.
If prices drop below $3,200 per ounce (~₹93,000 per 10 grams), profit-booking might pull it down to $3,100 per ounce (~₹90,000 per 10 grams).
Should you invest now?
Gold continues to shine as a hedge against inflation and geopolitical risks. But prices are near record highs. Here’s what investors should consider:
- Long-term view: Ideal for portfolio diversification.
- Short-term caution: Wait for a correction if entering at current levels.
–With Reuters inputs
First Published: Apr 15, 2025 9:57 AM IST
