Gold Prices Hit Record High Amid Trump-led Global Uncertainty

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Gold Hits ₹1,01,350: Trump Tariff War Sparks Historic Price Surge

By S Jha

New Delhi, April 22, 2025: Gold prices in India shattered records, crossing ₹1,01,350 per 10 grams for 24-carat gold. The gold price gains mark a historic milestone driven by escalating global trade tensions, particularly the Trump administration’s aggressive tariff policies.

The surge, which saw a ₹3,000 spike in Mumbai’s morning trade, reflects gold’s enduring allure as a safe-haven asset amid economic uncertainty. But is this rally a golden opportunity or a gilded trap?

Experts noted that the gold price surge has been led by the Central banks of China, India, and Türkiye buying the precious metal amid heightened geostrategic uncertainties. The surge has gain speed amid the ongoing Trump-led trade war with China.

Gold prices also surged in anticipations of interest rate cuts from major central banks. Internationally, spot gold touched an all-time high of $2,450 per ounce on Monday. It surpassed previous records set earlier this year.

Analysts point to a combination of macroeconomic factors and safe-haven demand as the key drivers behind the rally. “Gold is benefiting from a perfect storm of uncertainty,” Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters.

“We’re seeing strong buying from both institutional investors and central banks, who are diversifying away from the dollar,” added Hansen in comment to the news agency.

The precious metal’s rise has been further fueled by anticipation that the US Federal Reserve may pivot to interest rate cuts in the coming months. Lower rates typically weaken the dollar and boost demand for non-yielding assets like gold, argued analysts.

“The market is clearly betting that the Fed’s tightening cycle is done,” Edward Moya, senior market analyst at OANDA, told Bloomberg. Moya added, “If we start seeing weaker economic data, that could accelerate the rally in gold.”

Notably, son of the US President Donald Trump, Donald Trump Jr., had been speaking in favour of gold for the past few months. Also, Trump is known to be a big admirer of gold. He got his Oval Office makeover done with actual gold-carved artworks.

Trump while showing the Oval Office to broadcaster Laura Ingrahamhad shown the gold-work in his office. He had been effusive in his praise for the yellow metal.

Adding to the bullish sentiment is ongoing central bank accumulation. According to data from the World Gold Council, global central banks have been purchasing gold at a record pace, with China, India, and Turkey leading the charge.

“Central banks are clearly viewing gold as a strategic asset amid de-dollarization trends,” said Bart Melek, head of commodity strategy at TD Securities, in a note cited by CNBC. “Their consistent buying is providing a strong floor for prices.”

While some experts caution that the market could see short-term pullbacks, many agree the longer-term outlook for gold remains positive. “With so many global uncertainties — from the Middle East to trade tensions and potential recession risks — gold remains a hedge that investors are increasingly turning to,” said Carsten Menke, head of next generation research at Julius Baer, in comments to Financial Times.

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