In India, 24-karat gold is priced at ₹12,540 per gram, 22-karat at ₹11,495, and 18-karat (999 gold) at ₹9,405, according to Goodreturns.
The rally comes in the wake of US President Donald Trump’s imposition of 100% tariffs on Chinese goods, effective November 1, and new export controls on critical software.Analysts say these measures, along with broader geopolitical concerns, have reinforced gold’s status as a safe-haven asset.
Kyle Rodda, analyst at Capital.com, said, “Developments in the Middle East had previously eased pressure on the gold market, but renewed trade tensions between the U.S. and China have reignited safe-haven demand.”Gold’s rally has been supported by strong inflows into exchange-traded funds, central bank purchases, and expectations of near-certain Fed rate cuts, with markets pricing in a 25-basis-point reduction in October and another in December.
Fed Chair Jerome Powell is scheduled to speak at the NABE annual meeting on Tuesday, which may provide fresh cues for investors.
According to Rahul Kalantri, VP Commodities, Mehta Equities, “Gold witnessed sharp volatility, plunging in early trade before recovering amid profit booking in the dollar index. Heavy sell-offs in global equity markets also supported safe-haven demand.”
Despite hitting record highs, analysts maintain a cautiously optimistic outlook. Bullish momentum is expected to continue in the near term, though investors are advised to watch for potential volatility around geopolitical developments and central bank actions.
–With Reuters inputs
