Tue Apr 22 09:15:54 UTC 2025: ## Gold Prices Soar to Record Highs Amidst US-China Trade War and Federal Reserve Uncertainty

**New Delhi, April 22, 2025** – Gold prices surged to record highs on Monday, driven by escalating US-China trade war anxieties and President Donald Trump’s continued pressure on the Federal Reserve to cut interest rates. On the Multi Commodity Exchange (MCX), gold futures hit ₹100,000 per 10 grams, a 2.1% increase. Internationally, gold futures reached a record high of $3,509.06 per ounce before settling slightly lower at $3,491.25.

The dramatic price increase marks the fourth consecutive session of gains for the precious metal, reflecting investor flight to safe havens amidst growing economic uncertainty. Analysts attribute the surge to concerns surrounding US monetary policy, particularly President Trump’s repeated calls for interest rate cuts and veiled threats against Federal Reserve Chair Jerome Powell. This comes after the Fed indicated reluctance to cut rates in the near term.

Saumil Gandhi, Senior Research Analyst (Commodities) at HDFC Securities, highlighted the impressive long-term growth of gold, noting a Compound Annual Growth Rate (CAGR) of nearly 9.80% over the past 34 years. He further emphasized that gold’s performance in 2025 alone has already yielded approximately 26.20%. He cited massive central bank purchases, strong Asian demand, and Federal Reserve monetary easing as contributing factors to the price surge.

Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, echoed these sentiments, pointing to the ongoing US-China trade war and uncertainty in global financial markets as key drivers of the price increase. He also noted the dollar index’s fall to three-year lows following the ongoing dispute between President Trump and Chair Powell. The price volatility underscores the heightened nervousness in global markets.

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