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Gold Prices Hit Record Highs as Global Trade Tensions Escalate

Gold surpasses $3,300 per ounce globally, with Indian prices reaching ₹98,100 per 10 grams, driven by trade disputes, a weakening dollar, and record fund inflows.

A woman looks at a gold bangle inside a jewellery showroom at a market in Mumbai January 15, 2015. REUTERS/Shailesh Andrade/File Photo
Gold prices surpassed the $3,300 mark for the first time on Wednesday, April 16, 2025.
One of the reasons why this came about was the US dollar weakening by 0.65%, as per data from Bloomberg's Dollar Index Spot.
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Overview

  • Gold prices have reached all-time highs, with global spot prices exceeding $3,300 per ounce and Indian markets hitting ₹98,100 per 10 grams.
  • Escalating US-China trade tensions, including President Trump's critical minerals tariff investigation, have fueled safe-haven demand for gold.
  • The US dollar has weakened significantly, making gold more attractive to international investors and contributing to the price surge.
  • Gold-backed ETFs have seen record inflows of $80 billion in 2025, reflecting heightened investor interest in the metal as a secure asset.
  • Analysts predict continued gains for gold, citing ongoing geopolitical uncertainty, potential US Federal Reserve rate cuts, and central bank purchases.