Gold prices in India surged to an all-time high on April 3, 2025, as market tensions escalated following U.S. President Donald Trump's announcement of new tariffs on imports. The June futures contract for gold on the Multi Commodity Exchange (MCX) opened at ₹91,230 per 10 grams, a significant rise from the previous close of ₹90,728. During the trading session, the price peaked at ₹91,423, reflecting a robust increase in demand for the precious metal amid global economic uncertainties.
As of April 3, the price of 24-carat gold was recorded at ₹89,350 per 10 grams, while 22-carat gold was priced at ₹81,904 per 10 grams, according to the Indian Bullion Association (IBA). The price of silver also saw fluctuations, with the latest figures indicating it was priced at ₹99,658 per kilogram.
The rise in gold prices is attributed to a rush towards safe-haven assets, driven largely by the geopolitical and economic implications of Trump's tariff announcements. On April 2, 2025, Trump declared a 10% tariff on all U.S. imports, alongside higher duties on various countries. Furthermore, a 25% tariff on global automobile imports commenced on April 3, raising concerns about potential economic slowdown and inflation.
According to financial market analyst Kyle Rodda from Capital.com, "Tariffs are adding to gold’s appeal by increasing the likelihood of economic slowdown and potential rate cuts in the U.S." This sentiment reflects the broader market's reaction to the tariffs, which are expected to have a cascading effect on global trade and economic stability.
In major Indian cities, gold prices varied slightly due to local market conditions. For instance, in Delhi, the price of 22-carat gold was ₹85,240, while the 24-carat variant was priced at ₹92,980. In Mumbai, the rates were slightly lower, with 22-carat gold at ₹85,090 and 24-carat gold at ₹92,830. Other cities like Bengaluru and Chennai reported similar pricing trends, with 22-carat gold at ₹85,090 in both locations.
The India Bullion and Jewelers Association (IBJA) updates gold and silver prices twice daily, reflecting changes in market dynamics. The fluctuation in gold prices is not solely based on domestic demand; global trading activities, including those on the London OTC spot market and COMEX gold futures market, significantly influence local rates.
As the market continues to react to global economic developments, analysts suggest that gold may maintain its upward trajectory. The precious metal has already seen a remarkable 19% increase year-to-date, driven by inflation concerns and geopolitical instability. In light of these factors, many investors are expected to continue seeking gold as a reliable store of value.
Looking ahead, market observers are keeping a close eye on the support and resistance levels for gold prices. The MCX has identified support at ₹90,300–₹89,800, with resistance levels at ₹91,220–₹91,500. These thresholds will be crucial as traders navigate the volatile landscape influenced by both domestic and international factors.
In addition to gold, silver prices have also been impacted by the recent market shifts. On April 3, 2025, silver was priced at ₹99,658 per kilogram, down from previous highs. The broader market volatility has led to fluctuations in silver prices as well, with analysts noting that industrial demand for the metal remains strong despite recent sell-offs.
For consumers looking to invest in gold, understanding the purity of the metal is essential. Hallmarks and BIS standard marks are reliable indicators of quality. Additionally, the acid test and color tests can help determine purity levels, ensuring that buyers make informed decisions.
As the world grapples with the implications of trade tariffs and economic uncertainty, gold remains a focal point for investors seeking stability. With prices hitting record highs, the allure of this precious metal is likely to continue, making it a hot topic in financial circles.
In summary, the gold market is currently experiencing significant fluctuations driven by external economic factors, particularly the recent tariff announcements by the U.S. government. Investors are advised to stay informed about market trends and consult financial experts when making investment decisions.
