Gold prices surged by ₹400, surpassing the ₹85,000 mark per 10 grams for the first time, reaching an all-time high of ₹85,300 on 3rd February 2025. Market experts suggest that gold prices are likely to remain elevated given the current volatility, with potential trade wars, market fluctuations, and policy shifts
Concerns that President Trump’s tariffs on Canada, China, and Mexico could lead to inflation have kept the yellow metal prices near record highs. Although Trump has paused tariffs on Mexico and Canada for 30 days, the tariffs on Chinese goods are still in effect. On 4th February 2025, gold prices stayed close to the previous all-time high, driven by ongoing worries about inflation and a potential economic slowdown. Source: Moneycontrol
The yellow metal with 99.9% purity ended at ₹84,900 per 10 grams on 1st Feb 2025, while 99.5% purity gold extended its rally for the fourth consecutive session, rising by ₹400 to reach ₹84,900 per 10 grams. In the prior trading session, it had closed at ₹84,500 per 10 grams.

On Saturday, April, gold futures soared by ₹1,127 to hit a record high of ₹83,360 per 10 grams, coinciding with Union Finance Minister Nirmala Sitharaman’s presentation of the Union Budget 2025-26. Since January, the yellow metal prices have increased by ₹5,510 (7%), rising from ₹79,390 per 10 grams, according to the All India Sarafa Association. Source: Mint/CNBCTV18
This significant rise has left many wondering: What’s fueling this rally? Let’s examine the key factors driving this upward trend in yellow metal prices.
Factors Driving Gold Prices to an All-Time High
Market Volatility and Safe-Haven Appeal
Market volatility, triggered by global events, often prompts investors to turn to safe-haven assets like this precious metal. Amid growing concerns about a potential Trade War 2.0 with the United States, gold prices surged on the Multi Commodity Exchange (MCX) as investors boosted their positions. Experts highlighted that these trade tensions intensified the demand for gold, with many seeing it as a secure investment during uncertain times. Source: Mint
Rupee Weakens, Boosting Yellow Metal Demand
The rupee dropped by 55 paise on Monday, reaching a record low of 87.17 (provisional) against the US dollar. This fall came after global market sentiment weakened due to the Trump administration’s decision to impose tariffs on Canada, Mexico, and China, making gold a more attractive option.
International Yellow Metal Prices Reach Record Highs
International gold futures sharply rose, hitting a record high of USD 2,862.90 per ounce on Friday. This price spike reflects growing demand for gold as investors seek stability amid global economic uncertainty. Source: Mint
Wedding Season Drives Sustained Demand for Gold
Gold prices have remained elevated, partly due to the ongoing wedding season, which traditionally sees a spike in demand. According to the All India Sarafa Association, jewelers and stockists have been consistently purchasing gold to meet the needs of consumers preparing for weddings. In India, gold is considered an essential part of wedding traditions, making it one of the most desired commodities during this time of year.
Global Public Debt Concerns
Increasing global public debt is another reason investors are turning to gold. The International Monetary Fund (IMF) warns that global public debt could rise to 115% of total GDP within three years, nearly 20% higher than current levels. This rise is due to weak global economic growth, financial challenges, fiscal issues, and unstable economic policies. Such uncertainties make gold a more appealing safe-haven investment. news18.com
The recent surge in gold prices past the ₹85,000 mark results from a confluence of factors, including global geopolitical tensions, US political uncertainty, economic policies, domestic demand during festive seasons, concerns over rising global public debt, and overall market volatility.
Industry experts suggest that this week is critical for commodities, as key US macroeconomic data — including JOLTs (Job Openings and Labour Turnover Survey) job openings, ISM (Institute for Supply Management Services ) services, ADP (Asian Development Bank) employment, and non-farm payroll reports — are set to be released. These figures are expected to shape the direction of bullion prices. As these elements evolve, investors will likely watch gold as a preferred safe-haven asset.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
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