Gold Prices Surge Amid US-China Tariff Tensions..

Gold prices have seen a significant spike in 2025, soaring by ₹14,421 per 10 grams since the beginning of the year. This sharp rise is primarily driven by escalating trade tensions between the United States and China, which has created an atmosphere of uncertainty in the global economy. As a result, investors are turning to gold as a safe-haven asset.

The latest surge in gold prices came after the US announced additional tariffs on key Chinese imports, leading to a retaliatory response from Beijing. This tit-for-tat has not only impacted trade markets but also increased volatility across global financial indices. In such uncertain times, gold continues to remain a stable and preferred investment choice.

According to market analysts, the price of 10 grams of 24-carat gold has crossed ₹68,500 in some Indian cities, which marks an increase of over ₹14,000 since January 2025. The ongoing geopolitical instability, inflation concerns, and falling interest in riskier assets have all contributed to this surge.

India, being one of the largest consumers of gold globally, is feeling the impact directly. Jewelers are reporting a slowdown in retail gold purchases due to high prices, even as investment demand remains firm. Industry experts suggest that if global uncertainties continue, gold prices may rise further in the coming months.

On the international front, the dollar’s performance and decisions by the Federal Reserve regarding interest rates are also playing a crucial role in gold’s movement. As the dollar weakens and bond yields fall, gold becomes more attractive to investors.

Traders are now keeping a close watch on upcoming developments in the US-China tariff talks, as any positive or negative news could further influence gold’s trajectory. With elections approaching in the US and economic recovery in many countries still fragile, the outlook for gold remains bullish in the near term.

Overall, the current geopolitical and economic scenario has reinforced gold’s reputation as a hedge against uncertainty. Investors, both large and small, are increasingly viewing it as a critical component of their portfolios in 2025.