Why Gold Prices Touched a New Record High in International Market?

On April 16, 2025, Gold prices continued their gaining streak, reaching a new all-time high. At 09:51 IST, Spot gold prices soared 1.76% to $3,278.89, making it a new record high.

In the domestic market, gold futures also hit a historic peak. MCX Gold prices surged past ₹94,573 per 10 grams on Wednesday morning, climbing more than ₹1,000, or over 1%, in early trade. The rally was supported by the softer dollar and ongoing concerns about U.S. trade policies. Following the record high, MCX Gold prices saw a slight pullback, trading 1.13% higher at ₹94,475 per 10 grams around 9:40 AM.

Why are Gold Prices Rising?

The surge in gold prices has been fuelled by strong safe-haven demand amid uncertainty surrounding U.S. President Donald Trump’s tariff strategies, a weakening U.S. Dollar (USD), and expectations of further monetary easing by the Federal Reserve (Fed).

Rising economic uncertainty has increased the demand for safe-haven assets like gold, pushing prices higher. The U.S. Dollar Index dropped by around 0.5%, making gold—priced in USD—more affordable for buyers using other currencies, thereby boosting demand.

Additionally, expectations of interest rate cuts are supporting gold’s upward trajectory. These hopes were strengthened by a significant drop in inflation in both India and the U.S.

In India, retail inflation based on the Consumer Price Index (CPI) eased to 3.34% year-on-year in March 2025, marking the lowest level since August 2019.

Conclusion

The rising gold prices reflects the investors’ increased confidence amid the rising economic uncertainty. Also, a weakening U.S. Dollar (USD), and expectations of further monetary easing by the Federal Reserve (Fed) propelling gold prices.

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