Udaipur, February 10, 2025 - Gold has been trending bullishly for the past few weeks, testing new highs frequently. Geopolitical and economic uncertainties have been the main driver for this upward trajectory in the bullion. Escalating tensions between the US and China over imposition of tariffs by US President Donald Trump and the retaliatory move by China has ignited fears of trade war. Hence the gold price surge. The yellow metal is being viewed as a safe haven appeal by investors, to protect their wealth during times of economic uncertainty.

Today rates surged to record levels in the Indian Futures market following Trump’s announcement of 25% tariffs on all steel and aluminium imports into the US (in addition to the existing duties on metals). His comments on “owning” Gaza Strip has fuelled geopolitical fears. Additionally, a weaker US dollar (USD) is also pushing gold price upwards internationally. Gold price has an inverse relationship with the USD, rising whenever the latter dips. That is why those who invest in gold always have an eye on the USD rate.

In India, the falling rupee has been a major factor for the rise in gold prices. This morning, the Indian rupee opened lower falling to an all-time low of 87.92 per USD. With falling value in the local currency, many investors are turning to gold to prevent their wealth from eroding.

However, some analysts caution that gold is looking to be in an overbought condition, as per the Relative Strength Index (RSI), and a pullback in the short-term could happen. Investors are being advised to track the global economic trends closely before investing in the bullion.

Short-term fluctuations in the price are likely but, the long-term outlook in gold is bullish. If global uncertainties persist then the rally in gold will carry on.

With Media Inputs