Gold Nears ₹1 Lakh Mark in Delhi as US-China Tariff War and Weak Dollar Ignite Record Rally

Updated: April 21, 2025 19:01

Image Source: Times of India

Gold prices in Delhi have surged to unprecedented levels, with 24-carat gold trading at ₹97,730 per 10 grams and 22-carat gold at ₹89,600 per 10 grams on April 21, 2025. The precious metal is now within touching distance of the historic ₹1 lakh mark, reflecting a dramatic rally that has gripped both domestic and global markets.

Key Highlights:

Record Highs: Gold prices in India have soared to all-time highs, with 24K gold just ₹1,650 shy of ₹1,00,000 per 10 grams. This marks a 26% jump in 2025 alone, making gold increasingly unaffordable for retail buyers, especially ahead of the wedding and festival season.
Global Surge: Internationally, spot gold hit a record $3,384 per ounce, up 1.7% in a single session, while US gold futures climbed 2% to $3,396.10. This surge is driven by mounting US-China trade tensions, a weakening US dollar, and persistent central bank buying.
Trade War Impact: The ongoing tariff war between the US and China has rattled global markets. President Trump’s aggressive tariff hikes and China’s retaliatory stance have triggered fears of a global economic slowdown, pushing investors toward gold as a safe-haven asset.
Weak Dollar Boost: The US dollar’s decline to a three-year low has made gold cheaper for international investors, further fueling demand and price gains.
Inflation Hedge: With global trade volumes contracting and inflationary pressures rising due to supply chain disruptions, gold’s appeal as a hedge against economic uncertainty and stagflation has intensified.
Expert Outlook: Analysts predict gold could breach $4,000 an ounce by the end of 2025 if current trends persist, with further gains likely if the Federal Reserve cuts rates later this year.

As gold approaches the ₹1 lakh milestone in Delhi, the metal’s rally underscores its enduring status as a safe-haven investment amid global uncertainty and geopolitical strife.

Source: Reuters, Goodreturns, Business Today

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