Gold prices at Record High: Will India's jewelry question get a hit? | Einsmark news

Gold Price Today: The glow of gold becomes brighter with every day passing, as investors are increasingly streaming to the yellow metal to protect their wealth from risky assets, which are relentlessly falling amid the growing global trading tensions elicited by Donald Trump tariff measures. Shares are the first casualties when global uncertainty rises, encouraging investors to shift their wealth to safe Haven assets such as gold, which has long been considered the safest investment during economic turmoil. Another new milestone for gold in Wednesday, Gold prices have touched another record height – now a new normal for the yellow metal in 2025 – which laid out $ 3.164 per Troys after Donald Trump announced reciprocal rates at 180 countries, which further increased the global trading voltage. As promised earlier, Trump on Tuesday revealed new duties on trade partners, including India, and used rates as a bargaining tool to strive lower duties on US goods. Trump has set out a 10%baseline rate for imports from all countries, with higher rates for countries with trade surplus, including China (34%), the EU (20%) and Japan (24%), and a 25%tariff on foreign manufactured cars. With his new reciprocal rates, Trump invited large countries to take retaliation measures, which, according to economists, could lead to a major global trade war, which could bring the global economy to its knees. After finishing 2024 with stars profits, gold prices continued their bullish momentum in 2025, and got an extra boost after Trump appointed the US president. Investors started the year with great hope on Pro Growth Policy of the Trump administration, but were influenced by a series of tariff-related headings, which they asked to move their portfolios to secure Haven assets. Gold prices finished the first quarter of 2025 with a 19% increase, which was the largest quarterly profit since 1986. Uninterrupted rise: Prices have jumped 53% on MCX over the past 2 years to be exact. Gold has attracted significant support over the past few years. First, the Russia-Cewraine War has led the US to frozen Russian foreign exchange reserves, causing concern among global economies. As a result, large central banks, especially China, have accumulated gold in larger quantities, which are still in progress. Then came the Middle East crisis, followed by an increase in China’s retail demand and the impact of persistent high interest rates. In the current year, gold got an extra boost, as Trump’s protectionist measures drove prizes to record highlights. This boom even forced analysts to review their target prices higher, as their previous forecasts were previously violated than expected. Over the past two years, the gold prices of the place have risen by 60%. In the domestic market, prices at MCX jumped from £ 59,612 per 10 grams to the current level of £ 90,986, resulting in a huge 53%profit. Gold’s steady climb: Will it affect Indian sales? Now the question of whether the steady increase in gold prices will affect sales in India, the second largest gold consumer in the world. The yellow metal plays a central role in the country’s culture, which is considered a store of value, a symbol of wealth and status and a fundamental part of many rituals. According to the World Gold Council, Indian women collectively own about 24,000 tonnes of gold, which accounts for about 11% of the world’s total gold reserves in jewelry. Will Indians buy less of the precious metal with gold prices that continue to rise? To understand the impact, Livemint sought expert advice from Mahendra Luniya, digital gold expert and chairman of Vighnaharta Gold. Edited Extracts: Do you think that the emerging jewelry market in India can withstand the pressure of rising gold prices, or will we see a slowdown in sales? Gold prices have risen 7% over the past month, 17% over the past quarter, and an impressive 27% over the past year. Given this rapid increase, the general public takes on a guard-and-watch approach. The footfall in jewelry stores decreased slightly, but at the favorable event of Padwa, about 800 kg of gold was sold nationwide – although slightly lower than last year. While consumers now only purchase, as needed, total demand has not dropped drastically. I do not foresee a large downturn in the market. What impact do you make an impact on the performance of organized jewelry players in India as gold prices continue with their upward climbing? Signs of a slowdown are not visible in the organized gold market. There are currently no major festivals or marriage seasons, which of course lead to lower sales. In addition, with rising prices, many customers prefer to wait for price stability before making a purchase. However, once prices stabilize and the summer holidays end, we expect the demand to fall back in your opinion, is the central bank the most important catalyst behind Gold’s historical price rise, or are there other factors? The rising gold prices are affected not only by the purchases of the central bank, but also by increasing global uncertainties. The “America First” policy of former President Trump has led to retaliation tariffs, and these tax measures are unlikely to be reversed soon. Other countries also make efforts to protect their economies and industries, which further contribute to the increase in gold prices. Meanwhile, the ongoing world conflicts continue to be uncertainty. Israel has deployed its army in Gaza, Russia remains engaged in Ukraine, and the US has launched attacks in Syria. In addition, trade wars have a significant impact on gold prices. Given these factors, gold is expected to cross the $ 3.300 point soon and even surpass $ 3.500. If the Indian Rupee does not keep its land, gold prices in India could reach record highs in the near future. Disclaimer: The views and recommendations given in this article are those of individual analysts. This does not represent the views of coin. We advise investors to check with certified experts before making investment decisions. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. Business NewsMarketsstock Marketsgold Prices at Record High: Will India’s Jubry Question take a hit? More less