Gold Prices Reach All-Time High Amidst U.S. Economic Uncertainty
April 3, 2025, 10:00 AM IST
News hit the market hard as gold climbed to a new peak. U.S. President Trump imposed heavy tariffs on many trade partners. Investors rushed to a safe asset. Gold broke old records during trading.
Record-Breaking Prices
When the market opened, spot gold rose by 0.4%. Prices hit $3,145.93 per ounce and reached a high of $3,167.57. U.S. gold futures climbed 0.1% to $3,170.70 per ounce. In India, prices reached ₹89,350 for 10 grams. Markets in both regions moved in step.
Impact of New Tariffs
Trump set a 10% tariff on all imports into the United States. He imposed steeper tariffs on top trade partners. A 25% charge was added on global car and truck imports. Extra fees on auto parts start May 3. This firm step pushed up global trade risks. Investors then chose gold as their safe bet.
Factors Driving Demand
Some factors pushed investors toward gold:
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Safe choice in hard times: Gold has helped protect value during trouble. Its price grew more than 19% in 2024. Central banks now add more gold to their stocks.
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A softer U.S. Dollar: The dollar weakened as bond yields fell. With a softer dollar, gold becomes a more clear choice. Gold holds value as a non-interest asset.
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Market mood and job numbers: New data showed U.S. private payrolls grew in March. Some fear the job field might slow soon. Eyes now turn to an upcoming report on non-farm payrolls. Any sign of lower interest rates could push gold up more.
Insights from Market Analysts
Rahul Kalantri, Vice President at Mehta Equities, shared his view on gold:
- Gold (USD): The price may find rest between $3,118 and $3,095 per ounce. It meets pressure between $3,172 and $3,190 per ounce.
- Gold (INR): The lower range lies between ₹90,480 and ₹90,250 per 10 grams. Price may struggle to rise past ₹91,080 to ₹91,390 per 10 grams.
Future Outlook for Investors
Experts expect gold prices to continue climbing as global risks grow. Trade tensions and ongoing questions about the economy keep investors alert. Those who wish to protect their portfolios may add some gold.
Still, prices may drop when new economic data comes out. U.S. reports and global talks could shift market views. Long-term holders might keep some gold to spread risk. Short-term traders must watch U.S. data and global moves.
Gold stays a key asset for many plans in uncertain times.
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