Gold Prices Reach Record Highs as Trump Tariff Concerns Intensify

Investors turn to gold as a safe-haven asset while Federal Reserve holds interest rates steady and global economic uncertainties persist.

Gold prices surged to record highs, with spot gold peaking at $2,798.40 per ounce and domestic gold in India reaching ₹83,800 per 10 grams on Thursday.
The rise is driven by investor concerns over U.S. President Donald Trump's proposed tariffs on Mexico, Canada, and potentially China, which are seen as inflationary and damaging to economic growth.
The Federal Reserve maintained interest rates at 4.25-4.5% during its January meeting, signaling a cautious approach to future rate cuts amid balanced employment and inflation risks.
A weaker U.S. dollar and fears of stagflation—rising inflation combined with slowing growth—have further fueled demand for gold as a hedge.
Central bank purchases, particularly by the People's Bank of China, and strong liquidity in global gold markets continue to support elevated gold prices.