Mon Feb 03 14:20:00 UTC 2025: ## Gold Prices Soar to Record High Amid Fears of New US Trade War
**Mumbai, India** – Gold prices in India reached an all-time high of Rs 82,840 per 10 grams on Monday, fueled by escalating concerns over a potential “Tariff War 2.0” initiated by the US. The surge follows President Trump’s aggressive imposition of tariffs on Canada, Mexico, and China, with further threats looming over the European Union and BRICS nations.
The heightened trade tensions, particularly Trump’s warning of 100% tariffs on BRICS countries if they pursue de-dollarization, have triggered a “safe-haven” demand for gold, driving prices up. Silver also experienced significant gains, jumping nearly Rs 800 per kg.
Jateen Trivedi, vice-president of LKP Securities, attributed the surge to investor anxieties surrounding the renewed trade war and the strengthening US dollar, which followed the imposition of a 25% tariff on Canada and Mexico, and a 10% tariff on China. Rahul Kalantri, vice-president of Mehta Equities, echoed these sentiments, highlighting the volatility in gold and silver markets last week amidst the strengthening dollar and the escalating trade dispute.
While India’s finance minister maintained the status quo on gold and silver import duties in the recent budget, supporting prices, the global uncertainty continues to fuel demand. International gold prices also saw an increase, trading at $2,805 an ounce, while silver remained relatively flat at $31.35 an ounce.
Analysts predict further price fluctuations, with LKP Securities forecasting a potential rise to Rs 83,000, while Mehta Equities provided support and resistance levels for both gold and silver in both international and rupee terms. The ongoing trade disputes are expected to remain a key driver of precious metal prices in the near future.
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