Gold Prices Surge ₹9500 in 7 Weeks Amid Trump’s Tariff Policy – The Hidden Factor You Need to Know

Vault transfers from London to New York and rising geopolitical uncertainty drive gold to record highs

February 22, 2025: Gold Prices Hit New Highs

Gold prices have witnessed a dramatic surge over the past seven weeks, rising from ₹76,544 to ₹86,020 per 10 grams on MCX, marking a ₹9,500 gain. The rally aligns with Donald Trump’s new tariff policies, a weakening US dollar, and escalating geopolitical uncertainties.

Also Read: Inside ‘Ananta’: Google’s Massive New Bengaluru Campus

In the international market, gold soared to $2,954.94 per ounce, registering its eighth consecutive weekly gain. But while experts attribute this surge to economic uncertainty and increased ETF inflows, a hidden reason has been fueling this rally—the rapid transfer of physical gold from London’s Bank of England vaults to the US.

---

Gold Transfers: The Secret Behind the Price Spike

Also Read: Trump Firm on ‘Reciprocal Tariffs’ With India- Says ‘No One Can Argue With Me’

• US Tariff Speculation: Market rumors suggest Trump may impose tariffs on gold imports from European nations.
• Price Arbitrage Opportunity: US gold prices are now higher than in Europe, prompting major banks like JPMorgan Chase and HSBC to move gold reserves from London to New York to capitalize on this price gap.
• NY COMEX Vault Stocks Surge: Over 20 million ounces of gold have been added to New York’s COMEX vaults in the past eight weeks, triggering concerns over a potential London Cash Gold Contract Default.

Also Read: Meta Employees Slam Layoffs, Calls Facebook “Cruelest Company”, Says Job Cuts Not “Performance-Based”

---

RBI Joins the Gold Rush

The Reserve Bank of India (RBI) has also been shifting its gold reserves:

• May & October 2024: RBI transferred 100 and 102 tonnes of gold from London’s vaults to India.
• Current Reserves: RBI now holds 855 tonnes of gold, with 510.5 tonnes stored domestically.

---

What’s Driving the Gold Rally?

While Trump’s tariffs have played a role, other key factors include:

1. Geopolitical tensions and economic uncertainty.
2. Inflation fears and concerns over slow economic growth.
3. Central banks stockpiling gold amid financial instability.
4. ETF inflows driving investor demand for safe-haven assets.

---

What’s Next for Gold Prices?

Experts believe gold could continue its bullish trend, especially if Trump’s tariff policies escalate or inflation concerns intensify. The London gold outflow and New York vault buildup could also spark further market volatility. Investors should closely monitor global trade policies and central bank actions in the coming weeks.

---

Tags:

gold prices today, MCX gold rate, gold price surge, Donald Trump tariff policy, US-EU trade war, gold vault transfer, RBI gold reserves, London Cash Gold Contract Default, COMEX gold vault, gold market analysis