Gold has once again become the talk of the town. Prices in Delhi have crossed ₹99,000 per 10 grams. This sudden jump has surprised many people. But why has this happened? The answer lies in global politics, the falling US dollar, and the strong demand for gold. Let us explain in very simple English.
What Caused the Price Jump?
On Monday, former US President Donald Trump started a new tariff war. He put a 25% flat tax (called tariff) on goods coming from South Korea and Japan. This news made investors around the world nervous. When people get worried about the global economy, they often invest in gold. Gold is seen as a “safe” option during tough times.
At the same time, the value of the US dollar is going down. When the dollar becomes weak, gold becomes cheaper in international markets. This means more people start buying gold, and that pushes the price up.
So, two things are driving gold prices up right now:
- Trump’s new tariffs – creating global tension.
- Falling dollar value – increasing gold demand worldwide.
How Much Has Gold Risen?
According to the All India Sarafa Association, gold prices in Delhi rose by ₹550 on Tuesday. The price of 99.9% pure gold went up from ₹98,570 to ₹99,120 per 10 grams. The price of 99.5% pure gold also increased by ₹500, now costing ₹98,600 per 10 grams.
These prices include all taxes.
Silver, on the other hand, did not change. It remained steady at ₹1,04,800 per kilogram for the third straight day.
Global Gold Price Trends
Even though prices in India are rising, gold prices in the global market slightly fell. On Tuesday, gold fell by $11.42 or 0.34% to $3,325.09 per ounce in the international market. This small fall didn’t affect Indian prices much due to other strong factors like tariffs and dollar weakening.
What Experts Are Saying
Experts believe this rise in gold prices might continue if current global conditions remain the same.
Chintan Mehta, CEO of Abans Financial Services, said that investors are closely watching:
- US trade talks,
- The US Federal Reserve’s next steps, and
- New inflation data.
Read More: Google in Trouble Over AI Overviews in Europe? Publishers File Complaint
These will all decide gold’s next move.
Tejas Shrigrekar from Angel One says that gold is still a popular “hedge” asset. That means people buy gold when they fear economic problems. He said the US dollar has become weaker since June. This is making gold more attractive for buyers, especially in developing countries like India and China.
He also said that central banks of several countries are still buying gold. This long-term buying keeps demand strong. After a short pause, investors are again putting money into gold-related funds (ETFs). Even in the jewellery market, demand is strong, especially during festivals and wedding seasons.
What Next?
If these global problems continue, gold prices may soon cross ₹1,00,000 per 10 grams. Inflation data in the US, decisions by the Federal Reserve, and upcoming political events will play a big role in what happens next.
For now, people who have already invested in gold are happy. But new buyers might be waiting and watching, hoping for a small dip before they invest.
Disclaimer: This article is for informational purposes only. It is not financial advice. Please consult a professional before making any investment decisions.
