After an increase in the yellow metal rate, it crossed a psychologically important $ 3,500/ounce mark after its price in international markets.
The rally was promoted by combining factors, including US President Donald Trump and US Federal Reserve President Geom Powell, global trade uncertainties, a weak dollar and a performance between central banks.
Jetten Trivedi of LKP Securities said, “The rally in gold prices continues to cut interest rates immediately by the US Federal Reserve, despite Trump’s increasing pressure, which has been vocal about the rate cut.”
“This deviation has further enhanced the appeal of gold as a safe shelter, which forwards prices at the height of the fresh lifetime in both comex and MCX.” However, with prices at record levels, intraday volatility is likely to remain, Trivedi warned.
According to Kotak Mahindra MF’s Satish Dondapati, another reason for recent increase in gold prices is to weaken the US dollar and increase global trade concerns.
Since gold is in dollars globally, a weak greenback means that investors in other major currencies can buy yellow metal cheaper.
Given the heaven character of Gold, global uncertainties-economic and geopolitical-assistance prices move north.
So far in 2025, the yellow metal price in the international market is around 32%, while the Indian market has been slightly lower at 30%.
This is due to the appreciation of the rupee against the dollar this year.
