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Gold prices have skyrocketed to record levels as investors rush to safe haven assets following Donald Trump’s announcement of a 25% tariff on steel and aluminum imports. With rising trade tensions, financial markets are witnessing significant volatility, leading to increased demand for gold. In India, on Monday, gold prices reached a historic high of ₹85,469 per 10 grams before slightly adjusting to ₹85,322. The increase is driven by global market uncertainty, the weakening rupee, and investor sentiment. Internationally, gold surged to $2,900 per ounce, setting a new benchmark amid fears of economic instability.
Experts point to multiple factors contributing to the surge in gold rates:
🔸 Trump’s Trade Tariffs: The 25% tariff on steel and aluminium imports has triggered global trade concerns. Investors are hedging against possible market downturns.
🔸 Rupee Depreciation: The Indian rupee hit an all-time low of ₹87.92 against the US dollar, making gold imports more expensive.
🔸 Geopolitical Uncertainty: Rising tensions in the Middle East and concerns about inflation are driving investors to gold.
Financial analysts believe that gold will remain a strong investment option in uncertain times. According to Sugandha Sachdeva, founder of SS WealthStreet, gold is gaining momentum due to global economic fears and trade disputes. However, investors are advised to watch market trends closely before making significant investments. Some experts suggest that gold prices could stabilise if global tensions ease.
Stock markets across the globe experienced heavy fluctuations, with investors pulling funds from equities and shifting to gold. The Sensex and Nifty showed signs of volatility following the tariff announcement. With global trade policies under scrutiny, the future of gold prices depends on US-China relations, inflation rates, and global economic stability. Investors are advised to diversify their portfolios and stay updated on market trends.
