22-Carat Gold Price Breaks All Records: Know Actual Reason Behind This Surge

11 Feb 2025, 01:15 PM IST
Author: Mohammed Imteshal Karim | Credit: Canva

Gold prices in India reached an all-time high, with 22-carat gold trading above Rs 86,000 per 10 grams and 24-carat shooting past Rs 90,000 on February 11.

Author: Mohammed Imteshal Karim | Credit: Canva

In February 2025, prices in India increased by Rs 8,520 between January 1 to February 11, amid market buzz of the gold buzz surging beyond Rs 1 lakh per 10 grams.

Author: Mohammed Imteshal Karim | Credit: Canva

In the midst of this uncertainty and sky-rocketing demands, know the key reasons why the yellow metal is set on breaking price records:

Author: Mohammed Imteshal Karim | Credit: Canva

Fear of Trade Wars: US President Donald Trump rasied import tariffs on metal imports and uncertainty now prevails in the US making investors turn to gold.

Author: Mohammed Imteshal Karim | Credit: Canva

Geopolitical Uncertainty: Middle East tensions and Trump's Gaza plan increased market concerns, making gold a safe-haven asset for investors.

Author: Mohammed Imteshal Karim | Credit: Canva

China’s impact: China's central bank increased its gold reserves, boosting prices and pushing the yellow metal's value upwards.

Author: Mohammed Imteshal Karim | Credit: Canva

Inflation Concerns: Trump's policies might affect US inflation, making gold an attractive investment. The US Fed may not cut rates soon, supporting gold prices.

Author: Mohammed Imteshal Karim | Credit: Canva

Gold Demand in 2025: Gold demand surged due to tariff threats by Trump, leading investors to move from equities to safer assets like gold.

Author: Mohammed Imteshal Karim | Credit: Canva

Safe-Haven Asset: Gold remains a safe-haven asset, preserving wealth against inflation. Investors consider staggered investments to manage risk.

Author: Mohammed Imteshal Karim | Credit: Canva

Emotional Asset: Gold is an emotional asset. FOMO drives people to buy when prices rise, creating a cycle of demand and price increases.

Author: Mohammed Imteshal Karim | Credit: Canva

Gold Price Outlook: Prices may rise further, potentially touching USD 3,000 per ounce internationally and ₹88,000 per 10 grams of 22-carat gold in India soon.