Trade tensions between the United States and China sent shockwaves through global markets on Friday, propelling gold to an all-time high of over $3,200 per ounce, while in India, the yellow metal surged to ₹96,000 per 10 grams, inching closer to the psychologically significant ₹1 lakh milestone.
The price hike followed a steep drop earlier this week when global and domestic gold rates dipped due to market volatility. On Tuesday, domestic prices had dropped to ₹88,200 per 10 grams, and international gold fell below the $3,000 level.
The surge was sparked by renewed demand for safe-haven assets after US President Donald Trump intensified the ongoing tariff war, spooking global investors and triggering fears of a recession. This caused a sell-off in equity and bond markets and pushed the dollar index sharply lower.
“Gold prices spiked due to escalating tariff tensions and the weakening dollar index, which dipped below the key 100 mark,” said Saumil Gandhi, Senior Analyst, Commodities, at HDFC Securities. The dollar index, a benchmark measuring the dollar’s strength against major global currencies, had peaked at 109.6 earlier this year.
As per data from Comex, gold prices touched $3,262 per ounce during the US mid-session on Friday — setting a fresh record in international markets.