Gold and silver continue their record-breaking rally as economic uncertainty, US Fed rate cut speculations, and global trade concerns fuel demand.
March 15, 2025: Gold and Silver Prices Reach New Highs Amid Market Uncertainty
Gold and silver prices surged to fresh record highs, fueled by a combination of economic uncertainty, a weakening US dollar, expectations of interest rate cuts, aggressive central bank gold purchases, and investors shifting from equities to safe-haven assets.
Also Read: Stock Market Jitters: Investors Brace for More Volatility Despite Low Panic Levels
On MCX (Multi Commodity Exchange), gold prices hit ₹88,310 per 10 grams, while silver crossed the ₹1 lakh per kg mark, reaching ₹1,01,999 before settling at ₹1,00,761 per kg. Globally, gold prices touched a record $3,004.90 per ounce, marking a 14% rise in 2025 so far.
5 Key Factors Driving the Gold and Silver Rally
📌 1. Economic Uncertainty from US Tariff Policies
Also Read: How Trump’s Tariffs on India Could Backfire on the US Healthcare System
- The US administration’s fluctuating trade tariffs have heightened global market volatility.
- Gold, a traditional safe-haven asset, gains traction during economic and geopolitical instability.
📌 2. US Federal Reserve’s Rate Cut Expectations
- Lower-than-expected US inflation data (CPI at 2.8%) has reinforced speculation of a potential Fed rate cut in June.
- A softer monetary policy could push gold prices higher as lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
📌 3. Weakness in the US Dollar
- The US Dollar Index (DXY) has dropped by 4% YTD, making gold more attractive as an alternative investment.
- A weaker dollar generally supports higher gold prices, as the metal becomes cheaper for foreign investors.
📌 4. Central Banks’ Gold Buying Spree
- Global central banks have been aggressively accumulating over 1,000 tonnes of gold annually for the past three years.
- The Russia-Ukraine war and financial sanctions have accelerated this trend, with many countries diversifying their reserves away from the US dollar.
📌 5. Investors Shifting from Equities to Gold
- Concerns over global trade policy uncertainty and market volatility have led investors to hedge their portfolios with gold.
- The stock market correction, particularly in the US and European markets, has further increased gold’s appeal.
Gold Price Outlook: What’s Next?
Experts predict further upside momentum in gold, with prices potentially reaching ₹89,500 per 10 grams and $3,050 per ounce if they sustain above key resistance levels.
However, market participants are closely watching the US Fed, Bank of England, and Bank of Japan policy meetings, along with the Russia-Ukraine ceasefire updates. Any profit-booking or new trade policy announcements could introduce short-term fluctuations in gold and silver prices.
Tags:
#GoldPrice, #SilverRates, #GoldInvestment, #StockMarket, #USFed, #CentralBankGold, #MarketTrends, #GoldRally, #SafeHavenAsset, #EconomicUncertainty, #PreciousMetals,