As economic uncertainty deepens worldwide, gold prices have notched more and more record highs.
That’s because gold sales can rise sharply when anxious investors seek “safe havens” for parking their money. Gold’s current rally arrives as U.S. President Donald Trump continues to announce new tariffs on economic allies and foes alike, roiling financial markets into volatility and threatening to reignite inflation for families and businesses alike.
Recently, the International Monetary Fund said that outlooks for economies worldwide, including the U.S., have significantly worsened in the wake of Trump’s sweeping tariffs and the uncertainty they have created. And Trump’s recent threats suggesting he can remove Federal Reserve Chair Jerome Powell have only put investors more on edge.
If trends continue, analysts say the price of gold could continue to climb into unprecedented territory.
What you need to know the gold?
What’s the price of gold?
The going price for Indian spot gold hit a record Rs 1,02,100 per 10 gram — the standard for measuring precious metals — as of close Tuesday. That’s the lifetime peak.
The price of spot gold is nearly 29 per cent, since December 2024. By contrast, the stock market has tumbled. The benchmark stock market indices plunged sharply.
Gold futures also reached a record Tuesday, briefly prices sustained upward trend for the fourth straight session by surging Rs 2,048 to hit a fresh record high of Rs 1,00,000 per 10 grams .
Why is the price of gold going up?
A lot of it boils down to uncertainty. Interest in buying gold typically spikes when investors become anxious — and there’s been a lot of economic turmoil in recent months.
The heaviest uncertainty lies with Trump’s escalating trade wars. The president’s on-again, off-again new levy announcements and retaliatory tariffs from some of the nation’s closest traditional allies have created a sense of whiplash for both businesses and consumers — who economists say will foot the bill through higher prices.
Consumer confidence and global economic outlooks have deteriorated as a result. On Tuesday, the IMF said that the global economy will grow just 2.8% this year, down from its forecast in January of 3.3%. And for the U.S. specifically, the fund expects growth will come in at just 1.8% this year, down sharply from its previous forecast of 2.7%. China, which currently faces the heaviest levies from the U.S., is also expected to see weakened growth.
