Wed Feb 05 11:00:00 IST 2025: ## Gold Prices Soar to Record Highs: Experts Predict Further Increases
**Chennai, India** – Gold prices in India have reached record highs, prompting concerns and speculation among consumers and investors. The price of one sovereign of gold has increased by a staggering ₹6,240 in 2023 and a further ₹9,600 in 2024, with a ₹6,040 increase in just 35 days from January 1st to February 5th. This surge has left consumers shocked and questioning the future trajectory of gold prices.
Economic expert Jothi Nivananam attributes the price hike to several factors, primarily the escalating trade war fueled by the US government’s imposition of new import tariffs. The US has levied a 25% tariff on imports from Canada and Mexico, and a 10% tariff on imports from China, with China retaliating with a similar 10% tariff on US imports. This, coupled with the US government’s decision to deport undocumented immigrants, is expected to further impact the global economy and drive up gold prices.
Nivananam predicts that gold prices could reach ₹40,000 per sovereign. He points to the sharp increase during the COVID-19 pandemic and the current price of ₹40,630 as evidence supporting this prediction. While sales in jewelry shops are currently down, he advises that now is a good time for investors to purchase gold and silver, anticipating continued price growth. Silver prices have already risen from ₹60 to ₹80 per unit in the past month.
Nivananam concludes that gold and silver represent sound long-term investments likely to yield significant profits in the current economic climate. The ongoing uncertainty surrounding global trade and economic policies suggests that the upward trend in gold prices may well continue.
First Piper 