Wed Feb 05 11:00:00 IST 2025: ## Gold Prices Surge in India Amidst Global Uncertainty
**Mumbai, India** – Gold prices in India have skyrocketed, climbing by over ₹1,300 in a single day, reaching a new high of ₹84,320 per 10 grams of 24-karat gold. This dramatic increase follows a similar trend in international markets, where gold reached a record high of $2,880 per ounce.
The surge is attributed to several factors, primarily the escalating trade war between the US and China and the weakening US dollar. Uncertainty surrounding US President Trump’s trade tariffs, particularly the threatened imposition of tariffs on goods from Canada and Mexico (though temporarily delayed), has fueled investor demand for the safe-haven asset of gold. While the US has postponed the tariffs on Canadian and Mexican goods, the 10% tariff on Chinese goods remains in place, prompting retaliatory tariffs from China and increasing global market volatility.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-karat gold increased by ₹1,310, while 22-karat, 20-karat, and 18-karat gold also saw significant price hikes. Colin Shah, MD of Kama Jewellery, noted that the weakening dollar index (dropping from 109 to 107) further contributed to the gold price increase.
International gold prices have seen an 8% increase since the beginning of January and currently sit at approximately $2,891 per ounce. Experts predict further price increases, potentially reaching $3,000 per ounce internationally and ₹88,000 per 10 grams domestically. The ongoing trade tensions continue to fuel speculation and drive investor confidence towards gold.
First Piper 