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In India, gold prices surged by Rs 9,506 in seven weeks to Rs 86,020 per 10...
Read More Gold prices have been increasing both in India and international market. The yellow metal on Friday recorded a seventh straight weekly gain in India and eight weekly gain in the international market amid economic uncertainty and trade war fears due to US President Donald Trump’s tariff impositions as well as geopolitical tension. In India, gold prices surged by Rs 9,506 in seven weeks to Rs 86,020 per 10 grams on the MCX, compared with Rs 76,544 recorded seven weeks ago.
During the latest week ended on Friday, gold prices jumped 1.57 per cent to Rs 86,020 per 10 grams on the MCX. What Is Driving Rally In Gold Prices? The gold prices have been rising in India in line with the international trend.
Here’s are the key reasons for the bullion price jump: 1. Tariff impositions by US President Donald Trump has fuelled concerns around the potential trade war, which has pushed up the gold prices. 2.
A weaker dollar index has supported gold’s upward momentum, keeping demand for gold high. 3. Banks and funds have been maintaining high allocations to the safe-haven asset, gold remains well-supported.
“The tariff dispute between the US and Europe has created uncertainties in global trade, impacting gold prices. There are concerns that the Trump administration may impose tariffs on gold following the recent 25 per cent import tariffs on aluminium and steel. This anticipation has fueled demand in the US, pushing gold prices higher," Sugandha Sachdeva, founder of SS WealthStreet, was quoted by livemint as saying.
While gold prices in the US and the UK typically move in tandem, the current price disparity has led major banks to transfer gold from London vaults to New York, capitalising on higher prices. Banks like JP Morgan and HSBC have relocated gold reserves to New York, driving up US inventories since President Trump’s election. Reports indicate that nearly 2 per cent of the Bank of England’s total gold reserves have been moved out of its vaults in recent months, Sachdeva added.
Gold And Silver Prices Today Though MCX remains closed on Saturdays, gold shops remain open across the country. On February 22, 2025, in Mumbai, 22-carat gold rate remained almost flat at Rs 80,240 per 10 grams, while the 24-carat gold price was at Rs 87,740. Silver was trading above Rs 1 lakh at Rs 1,00,300 per kg in India.
What Factors Affect Gold Prices In India? International market rates, import duties, taxes, and fluctuations in exchange rates primarily influence gold prices in India. Together, these factors determine the daily gold rates across the country. In India, gold is deeply cultural and financial.
It is a preferred investment option and is key to celebrations, particularly weddings and festivals. With constantly changing market conditions, investors and traders monitor fluctuations closely. Staying updated is crucial for effectively navigating dynamic trends.
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