Gold prices hit an all-time high in international markets, crossing the $2,850-per-ounce mark during Friday morning trade on the Chicago Mercantile Exchange. This represents a rise of over $25 in a single day, driven by safe-haven demand following the Trump administration's announcement of a 25% tariff on Canadian and Mexican goods. As a result, domestic prices also surged. The market expects the rally to continue. Since January 1, gold has already gained over 6%
According to HDFC Securities, the yellow metal hit a new record high Friday, taking the appreciation in the first 30 days of 2025 by more than 6% as investors seek safety amid volatility in the stock market and potential global trade war threats from Trump's tariff announcements, which could fuel inflation and hinder the economy.
In the domestic market gold prices trended at $2797 on MCX while Delhi spot (24 karats) was trading at Rs 84,100/10 g, up from Rs 83,025.
“We believe gold could be the asset that benefits the most in the short to medium term due to its special status as safety against the uncertainty. Apart from this, factors such as central bank buying, ETF inflows, and the easy monitoring policy of Western central bankers also support the uptrend in the medium to long term,” Dilip Parmar, a senior research analyst at HDFC Securities told TNIE.
He further said technical set-up indicates a bullish trend likely to continue since the spot prices have already surpassed the prevous all-time highs, it now enters uncharted territory, which opens upside toward the $2855 and $2922 levels in near term, with a strong bases at $2710-$2655.
Technically, he believes the uptrend is likely to continue in precious metals with spot gold surpassing its previous all-time high set in October. Now it has immediate resistance at $2,826 and support at $2775. The MCX gold April future finds support at the 81,850/81,425 levels, while resistance is located at the 83,050/83,300 levels, he added.
Chintan Mehta, the chief executive of Abans Group is sure of the prices crossing the $3,000 mark soon as he believes gold is gaining strong momentum as economic uncertainty and shifting policies drive demand.
With a resilient labour market and inflation expected to ease due to Trump’s push for maximum oil production and continued reduced consumption from China, downward pressure on oil prices is likely to help curb inflation, he added.
Trump’s aggressive tariff plans on multiple economies are accelerating de-dollarisation, with nations shifting away from the dollar toward other asset classes, contributing to its weakening and further supporting gold’s rise.
Central banks continue to accumulate gold as a hedge against global risks, recently adding 53 tonnes and China has resumed purchases in November after a six-month pause, reinforcing strong demand.
“We anticipate gold prices could reach $3,000/ounce in the spot market soon. Though a short-term correction is likely, as key policies and rate cuts are implemented, we expect a renewed rally in the second half, driving gold prices over the $3,000 mark,” he added.