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Gold has always been a cherished commodity, but with its surging prices, gold is becoming a far dream for many. The yellow metal's price has seen a 10% rise in just two months since the begining of 2025. As of now, the price of 22-carat gold is Rs. 8,025 per gram in Delhi, while 24-carat gold is priced at Rs. 8,753. In Bangalore, the rate stands at Rs. 7,981 for 22-carat gold and Rs. 8,707 for 24-carat gold.
Also Read: Gold prices surge: 10 grams now near ₹88,000, surge by ₹5,020 in just 10 days
One of the primary reasons behind this spike in gold prices is the economic policies of the new US President, Donald Trump. Since assuming office for a second term, Trump has imposed hefty tariffs on several countries, including China, Mexico, and members of the BRICS group. These tariffs, particularly the 25% duty on goods imported from Canada and Mexico and the 10% tax on Chinese imports, have disrupted global trade and created economic uncertainty.
While tariffs on Canada and Mexico are not currently in effect, the 10% tariff on Chinese goods remains. In retaliation, China has imposed tariffs on US products such as coal, crude oil, and natural gas. This trade war is driving up inflation concerns, prompting the US Federal Reserve to consider increasing interest rates. This in turn affects market stability and drives investors to seek safe-haven assets like gold.
The tariff conflict has also affected global currency markets. The US dollar has strengthened, making gold more expensive for foreign buyers, especially in India. Our rupee has weakened against the dollar, hitting a value of 87.64 per dollar last week. As a result, gold imports into India have become more expensive.
Despite the rise in prices, India's demand for gold continues to grow. The World Gold Council predicts that India’s gold demand will rise to between 700 and 800 tons in 2025, driven by the continued popularity of gold coins and exchange-traded funds. In 2024, India’s demand reached 802.8 tons, further cementing gold’s status as a valuable and enduring asset.
In conclusion, the surge in gold prices has not dampened demand, as the allure of gold remains strong among buyers, both in India and around the world.
