Why Gold Prices Hit All-time High in India?

USA President Donald Trump’s Tariff Threat and the subsequent controversy that followed sent gold prices skyrocketing as the yellow metal hit an all-time high in India. As soon as Trump came into power and started imposing tariffs, experts predicted the rise in gold prices. 

Yesterday, Gold’s lifetime high of Rs. 84,894 per 10 grams marked an over 10% rise in yellow metal prices in 2025. This surge is majorly due to the uncertainty that surrounded Mr.Trump's decision to impose tariffs on China and other countries. 

While the surging gold and silver prices indicate good news for investors, equity markets paint a sorry picture as Nifty has barely managed to survive with a meager 0.22% return in 2025 so far (as of Feb 5). 

With the increase in tariffs imposed by the United States, China was bound to depreciate the value of its currency to keep up with competition in the export market. 

Even though the current surge in yellow metals is due to the tariffs, if one takes a look at the bigger picture, the major reason behind the increase in gold prices was that global central banks have increased their purchase of gold since the Ukraine-Russia war. 

From the current situation, it can be considered that the bullion appeal will only increase further and it remains to be seen how long this trend will continue.