This year has been nothing short of spectacular for gold prices, showcasing a remarkable surge. As of now, domestic spot gold has seen a significant 23% increase, with the yellow metal rising 5% just in April. Recently, the MCX Gold June contract reached an astonishing all-time high of ₹93,940 per 10 grams on April 11, eventually closing slightly higher at ₹93,887 per 10 grams. Meanwhile, international gold prices also surged, with Comex Gold rising 2.44% to settle at $3,254.90 after peaking at $3,263 per troy ounce.

Factors Behind the Rising Gold Prices

The surge in gold prices this year can be attributed to several crucial factors.

• Trade War Concerns: The ongoing trade tensions, particularly between the U.S. and China, have created an uncertain economic environment. Despite President Donald Trump announcing a temporary halt on reciprocal tariffs, he has imposed a staggering 125% tariff on China, which retaliated with similar measures on American goods. This escalating conflict has intensified fears regarding global economic stability, which traditionally boosts gold prices as it is seen as a safe haven during turmoil.

• Economic Slowdown Fears: Trump’s tariff strategies have raised alarms about a potential recession in the U.S. This looming possibility may lead the Federal Reserve to consider interest rate cuts, a factor that usually supports higher gold prices.

• Weakening U.S. Dollar: Another significant element contributing to gold’s rise is the decline of the U.S. Dollar Index. Recently, it fell below 100, closing at 99.78, a drop of over 1%. Since gold is priced in dollars, a weakened currency makes it more affordable in other markets, boosting demand.

Future Outlook for Gold Prices

Experts believe that the upward trend in gold prices is likely to persist due to these ongoing pressures.

• Anuj Gupta, head of commodities at HDFC Securities, forecasts that international gold prices could climb between $3,300 and $3,500 per troy ounce, while domestic gold prices may reach ₹97,000 per 10 grams by the end of 2025.

• According to Jateen Trivedi, VP of Research at LKP Securities, the current momentum favors buyers, with gold potentially testing the resistance levels of ₹94,500 to ₹95,000, while finding support around ₹92,000. He emphasized that developments in tariff disputes and investor positioning ahead of significant global economic indicators will continue to influence price movements.

For those interested in staying updated on market trends, be sure to check out our latest articles and insights on gold prices and economic forecasts.