Gold prices have reached a new all-time high. In the domestic market, gold is close to Rs 90,000 per 10 grams. Abroad, the price has crossed $3,000 per ounce. The demand for gold has increased due to US President Donald Trump's tariff policy and the fear of the economy going into recession. Its effect is visible on its prices. Gold is considered the safest investment option. The demand for gold increases when uncertainty increases in the world.
Prices rose 3% last week
On the morning of March 18, gold futures were trading at Rs 88,375 per 10 grams on commodity exchange MCX, with a gain of Rs 369 or 0.40 percent. According to the India Bullion and Jewelers Association, the price of gold (999 purity) was Rs 88,100 per 10 grams on March 17. Last week, gold saw a rise of about 3 percent. Gold prices are at record highs in both domestic and foreign markets.
Tariff war increased the shine of gold
Prathamesh Mallya, analyst at brokerage firm Angel One, said, "Trump's tariff policy is expected to increase inflation and economic uncertainty. Due to this, gold is making new records of heights in 2025. Gold is considered a means of hedging between political risk and inflation." Central banks of many countries are increasing investment in gold. The demand for gold has been strong since Covid, due to which its prices are continuously increasing.
The year 2025 can be great for gold
Chirag Mehta, Chief Investment Officer of Quantum Mutual Fund, said that 2025 has been great for gold. It is continuously making new records of heights amidst fluctuations. Gold is not the target of the increasing tariff war in the world. But, due to increasing economic uncertainty, investors want to invest in gold. Due to this, its prices are rising. Gold prices have got support from the fear of recession in the US economy due to the tariff war.
Gold gave 20 percent return in 2024
Gold gave more than 20 percent return in 2024, while Nifty's return was 8.7 percent. Meanwhile, there are signs of softening of inflation in America and India. This has increased the hope of reduction in interest rates in 2025. Ajay Garg of SMC Global Securities said that when people feel that the interest rate is going to come down, they will want to invest in gold for higher returns. This means that the rise in gold will continue in 2025 as well.
What should you do?
Experts say that the price of gold has reached a record high. Despite this, there is still scope for it to rise. In such a situation, investors should focus on diversification instead of earning profit from gold. Gold makes the investment portfolio diversified. This makes it easier to manage risk in the long term. If your investment portfolio does not have gold or its share is less, then you can buy a little gold on every fall.
