Gold & Silver Prices Soar to Record Highs Amid US Political Turmoil
Gold and silver prices in India surged to unprecedented levels on Monday, mirroring a global rally driven by investors seeking safety after the assassination attempt on Donald Trump and fears over his proposed tariffs.
Key Takeaways
- Record High: 24-carat gold crossed ₹90,000 per 10 grams in major cities.
- Global Trigger: Spot gold breached $2,800/ounce for the first time ever.
- Primary Driver: Political uncertainty in the US sparked a “flight to safety.”
- Domestic Support: Weak rupee and festive season demand added upward pressure.
Unprecedented Price Levels
The price of 24-carat gold surpassed ₹90,000 per 10 grams for the first time in cities like Delhi and Mumbai. Silver also rallied sharply, approaching ₹1,10,000 per kilogram.
Globally, spot gold prices jumped over 2% to break the $2,800 per ounce barrier—a historic milestone.
The “Perfect Storm” for Gold
Analysts point to a classic risk-aversion play. “The attack on Trump and the subsequent market panic over his aggressive tariff announcements have created a perfect storm for gold,” said a Mumbai-based commodities analyst.
“Investors are pulling money out of equities and other riskier assets and parking it in gold, which is seen as a store of value during times of crisis.”
How US Politics is Shaking Markets
The stems from two events: the assassination attempt on former President Trump and his recent proposal for sweeping tariffs on all imports if re-elected. Economists warn this could trigger a global trade war, unsettling financial markets.
This uncertainty has caused a sell-off in global stocks and a rush towards safe-haven assets like gold, US Treasuries, and the Swiss Franc.
Domestic Factors in India
In India, the rally found extra support from a slightly weaker rupee, which increases the cost of dollar-denominated gold imports. High domestic demand ahead of the festive and wedding season is also underpinning prices.
“We are seeing strong physical buying from jewellers and retail investors who are afraid prices will go even higher,” the analyst noted. While some profit-booking is possible, the bullish trend is expected to continue as long as global political risks remain high.
