Glitter Fever: Gold Hits Fresh Highs As Tensions Spark Safe-Haven Rush

Gold prices continue their relentless climb for the third straight day, driven by global uncertainty and a weakening dollar. In India, gold rose by Rs 25 per gram and Rs 200 per sovereign (8grams) today, pushing rates to Rs 8770 per gram and Rs 70160 per sovereign—figures that have not only broken domestic records but are also reflective of international momentum.

The international spot price reached $3,230.18 per ounce, with Monday’s all-time high of $3,245.42 still fresh in investors’ minds. With the rupee trading at 86.10 to the dollar, the cost of purchasing a sovereign with minimal making charges has now crossed Rs 76,000.

Analysts say the sustained rally is fuelled by safe-haven demand as fears grow over trade wars and geopolitical instability. Uncertainty surrounding US President Donald Trump’s looming tariff decisions, particularly on semiconductors and pharmaceuticals, has rattled markets. Meanwhile, China’s response remains conspicuously absent.

Jim Wyckoff of Kitco Metals noted that while traders await a fresh trigger, bullish sentiment persists. “There’s still safe-haven demand,” he said, pointing to strong technical indicators.

Reuters also highlighted that a weaker dollar has made gold more appealing to investors holding other currencies. The U.S. currency is nearing a three-year low, and Commerzbank observed that its diminishing status as a safe asset is pushing many investors towards gold.

With US interest rate cuts expected to resume by June, and Federal Reserve Chair Jerome Powell due to speak on Wednesday, all eyes are on central banks and policymakers for direction.