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Gold prices saw a significant rise on Friday, coinciding with high-stakes discussions between Prime Minister Narendra Modi and US President Donald Trump at the White House. Gold futures for April 2025 on the Multi Commodity Exchange (MCX) opened at Rs 86,020 per 10 grams and quickly surged to Rs 86,144 within minutes.
As of February 14, 2025, gold prices in futures trade increased by Rs 371, reaching Rs 86,180 per 10 grams. The increase was attributed to speculators building positions based on strong demand in the spot market. On the MCX, March delivery gold contracts saw an uptick of 0.43%, trading at Rs 86,180 per 10 grams with a business turnover of 16,714 lots.
Factors Behind the Gold Price Surge
Analysts suggest that the rise in gold prices is linked to fresh positions being taken by market participants, signaling positive sentiment around the yellow metal. At the international level, gold futures saw a modest gain of 0.04%, reaching USD 2,929.37 per ounce in New York.
The rally in gold prices can largely be attributed to global economic uncertainty, compounded by the tariff policies of US President Donald Trump. Additionally, the decline in the US dollar and falling bond yields are contributing factors behind the price hike.
Gold as a Safe-Haven Asset Amid Global Instability
With global stock markets experiencing volatility and rising economic uncertainty, investors are increasingly turning to gold as a safe-haven asset. The latest data from the Reserve Bank of India (RBI) shows that India’s gold reserves increased by USD 1.242 billion to USD 70.893 billion in the week ending January 31, 2025.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, explained in an interview with TV9 that not only India and the US but several other countries are closely watching the outcome of the Modi-Trump meeting. He added that due to Trump’s protectionist policies, gold has emerged as a safe investment, with people moving their funds into gold and US bonds amid global uncertainties.
As global tensions rise, investors are increasingly looking to gold as a secure store of value, driving up its demand and prices.
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