Gold prices have been on a steady upward trajectory, both in India and international markets, as economic uncertainty and trade tensions drive demand for the safe-haven asset.

On Friday, gold recorded its seventh consecutive weekly gain in India and its eighth straight weekly gain globally. The rise is largely attributed to US President Donald Trump’s tariff impositions, fears of a trade war, and ongoing geopolitical tensions.

Gold Prices in India: A Seven-Week Rally

Over the past seven weeks, gold prices in India have skyrocketed by ₹9,506 per 10 grams, climbing from ₹76,544 to ₹86,020 on the MCX (Multi Commodity Exchange).

• Latest Weekly Gain (Feb 22, 2025): Gold surged 1.57%, closing at ₹86,020 per 10 grams on the MCX.
• Gold prices have been rising for seven consecutive weeks in India, reflecting the international market trend.

What’s Driving the Gold Price Rally?

Several factors are fueling the bullion price jump:

1. Trade War Concerns & Tariff Impositions

• US President Donald Trump’s tariff policies have heightened global trade uncertainties.
• Fears of a potential trade war have pushed investors towards gold as a hedge against economic instability.

2. Weak US Dollar Index

• A declining US dollar has supported gold’s upward momentum, making it more attractive to global investors.
• When the dollar weakens, gold prices typically rise as the metal becomes cheaper for international buyers.

3. Increased Demand from Banks and Funds

• Large financial institutions, including banks and hedge funds, have increased their gold holdings.
• As a safe-haven asset, gold remains well-supported in uncertain economic conditions.

Market Expert’s Take:

“The ongoing tariff dispute between the US and Europe has impacted global trade, pushing up gold prices. Concerns are rising that the Trump administration might impose tariffs on gold, following recent 25% import duties on aluminum and steel. This anticipation has further fueled demand in the US.” – Sugandha Sachdeva, Founder of SS WealthStreet (quoted in Livemint).

Additionally, banks like JP Morgan and HSBC have begun transferring gold from London vaults to New York, capitalizing on higher prices in the US market. Reports indicate that nearly 2% of the Bank of England’s total gold reserves have been relocated to New York in recent months.

Gold and Silver Prices in India (February 22, 2025)

Although MCX remains closed on Saturdays, gold remains available in retail markets across India.

Silver prices continue to trade above ₹1 lakh per kg, reflecting strong demand in the Indian market.

What Factors Affect Gold Prices in India?

Several elements determine the daily gold price in India, including:

International Market Trends – Gold prices in India are directly influenced by global prices.
Import Duties & Taxes – India imports a large portion of its gold, making government duties a key price factor.
Exchange Rate Fluctuations – A weaker rupee makes gold more expensive for Indian buyers.
Cultural & Seasonal Demand – Weddings and festivals drive gold demand, affecting prices seasonally.

Final Thoughts

Gold continues to hold cultural and financial importance in India, serving as both an investment and a symbol of prosperity. With economic uncertainties persisting, investors and traders are closely watching market trends to navigate price fluctuations effectively.

For the latest updates, keep an eye on global economic shifts and government policies affecting the bullion market.