Gold prices surpassed Rs 80,000/10 gm for the first time on Wednesday, according to data from a leading industry organisation, reflecting increased safe-haven demand from investors concerned about potential market volatility following an anticipated disruptive Donald Trump presidency. The global weakening of the dollar has also contributed to the price increase.
The dollar index’s retreat has coincided with rising gold prices. Following last week’s two-year-plus peak of 110.17, primarily driven by trade tariff expectations, the dollar index has shown weakness, declining in five out of six recent sessions.
This pattern has prompted global investors to shift from dollar investments to gold, resulting in price appreciation. During periods of economic and geopolitical uncertainty, bullion is regarded as a secure investment option.
Gold price trend
According to an ET report, physical market data from the India Bullion and Jewellers Association (IBJA) showed 24-carat gold closed at Rs 80,194 per 10 gms. Industry experts at IBJA and the bullion trade noted that whilst the weakening dollar and gold’s safe-haven status have driven prices upward, the prospects for retail jewellery sales during the remaining wedding season appear uncertain due to these price increases.
Renisha Chainani, research head at Mumbai-based Augmont Gold, attributed the gold price surge to Trump-era policies, including increased tariffs and trade uncertainties. She indicated that price stability would likely depend on geopolitical clarity and dollar trend reversals.
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“A pause or reduction in tariffs and improved global trade conditions could stabilize gold prices by mid-2025,” said Chainani. “Until then, high prices may impact consumption, particularly in price-sensitive markets like India, while urban and institutional investors might continue to hedge against economic uncertainties, keeping demand relatively high.”
The dollar Index measures the US dollar’s value against a collection of foreign currencies, including the yen and euro.
IBJA data showed that 24-carat gold closed at Rs 79,453 per 10 gms on Tuesday. The previous peak was recorded on October 30, 2024, at Rs 79,681 per 10 gm.
