Gold Prices Hit Record High Amid US Inflation & Trade War Fears

MCX gold reaches a new peak of ₹86,875 per 10 gm as global uncertainties drive demand for the yellow metal.

March 13, 2025: Gold prices surged to record highs on Thursday as persistent trade war fears and US inflation concerns fueled demand for safe-haven assets. The MCX gold rate opened at ₹86,816 per 10 gm and quickly climbed to an all-time high of ₹86,875 within minutes of the market opening. Meanwhile, international spot gold reached $2,945 per ounce, with COMEX gold hovering around $2,954 per troy ounce.

Also Read: Indian Stock Market Updates: Key Overnight Developments & Market Cues for Today

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📈 Key Drivers Behind the Gold Rally

1️⃣ Trade War Fears

• New US tariffs: President Donald Trump’s new trade policies have intensified global economic uncertainty.
• Tariffs on China, Canada, and Mexico: The US increased tariffs on Chinese goods to 20% and imposed a new 25% duty on imports from Canada and Mexico.
• Market reaction: Investors are turning to gold as a hedge against market instability.

Also Read: “India’s Inflation Hits Lowest Level in Months, Bringing Relief to Consumers”

2️⃣ US Inflation & Rate Cut Expectations

• US CPI Data: Consumer inflation in the US slowed slightly to 2.8% in February, compared to 3% in January.
• Rate cut hopes: Lower inflation strengthens expectations that the US Federal Reserve may cut interest rates, boosting gold prices.
• Market outlook: Analysts predict gold could soon touch the $3,000 per ounce mark.

3️⃣ Weakening US Dollar & Safe-Haven Demand

• Gold thrives in uncertain markets: Investors are shifting capital from riskier assets to gold, driving prices higher.
• US Dollar weakens: A softer dollar and Treasury yields make gold more attractive.

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🔮 Market Predictions & Expert Insights

🔸 Anuj Gupta (HDFC Securities):
“Despite lower US inflation, trade war concerns persist, pushing gold prices upward.”

🔸 Manav Modi (Motilal Oswal):
“The backdrop of aggressive tariffs and economic uncertainty is driving gold demand as a safe-haven asset.”

🔸 Edward Meir (Marex Analyst):
“$3,000 per ounce is the next logical target, likely within the next few months.”

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🌍 Global Gold Prices & Market Trends

• US spot gold: $2,945 per ounce
• COMEX gold: $2,954 per troy ounce
• MCX Gold (India): ₹86,875 per 10 gm
• Silver price (India): ₹101,520 per kg

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💰 What’s Next for Gold Investors?

• Analysts expect continued bullish momentum in gold prices.
• Short-term target: $3,000 per ounce as global uncertainties persist.
• Long-term investors may benefit from safe-haven demand and potential rate cuts by central banks.

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