Gold Price Touched All-Time High Amid Weaking Dollar and Rising Trade War

On April 17, 2025, Gold prices in India surged to a record high amid rising global economic uncertainty and renewed trade tensions between the United States and China. The price of 24-karat gold in India reached ₹97,310 per 10 grams, while 22-karat gold was priced at ₹89,200 per 10 grams, and 18-karat gold at ₹72,990 per 10 grams. This increase came despite a slight dip in global prices early in the day due to profit-taking.

Spot gold was trading at $3,339.37 per ounce, down 0.1%, after reaching a peak of $3,357.40 per ounce earlier in the session. US gold futures were up by 0.2% at $3,351.50 per ounce.

MCX Gold Surged to New High

On the domestic front, MCX Gold hit a record high on Thursday, April 17, fueled by growing concerns over the ongoing trade war and its potential impact on global economic growth. The US dollar’s weakness and strong spot demand also played a role in supporting gold prices. MCX Gold June 5 contracts surged to an all-time high of ₹95,935 per 10 grams during the session, and by 11:20 AM, the contract was up 0.03% at ₹95,685 per 10 grams.

In the previous session, MCX Gold June 5 contracts settled with a solid 2.42% gain at ₹95,710 per 10 grams, after hitting a record high of ₹95,740 during the day.

Why is the Gold Price Rising?

The gold prices reached new highs, driven by the increased demand for safe-haven assets and the weakness of the dollar. The US dollar’s decline against other currencies is also supporting gold prices, with the dollar on track for a fourth consecutive weekly loss.

Uncertainty surrounding President Trump’s tariff policies is another major factor influencing gold prices. Additionally, Trump has raised tariffs on China to a staggering 245%, intensifying the trade conflict between the world’s two largest economies.

Conclusion

The ongoing uncertainty stemming from Trump’s tariff policies is a key driver behind the rise in gold prices. Trump’s tariff actions could lead to higher inflation and unemployment in the US, contributing to uncertainty over the US Federal Reserve’s future interest rate decisions.

Also Read: Why Gold Prices Are Falling Instead of Rising?

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