Gold Soars Past Rs 96,000 Amid Escalating US-China Trade War
New Delhi, April 11, 2025 — Gold prices surged by Rs 6,250 to reach a historic high of Rs 96,450 per 10 grams in the national capital on Friday, driven by intense demand from jewellers and retail buyers. As per agency report, the surge follows renewed global tensions due to the deepening trade conflict between the United States and China, which has spurred demand for gold as a safe-haven asset.
The All India Sarafa Association reported that the price of 99.9 percent pure gold had closed at Rs 90,200 on Wednesday. After four consecutive sessions of steep declines, gold with 99.5 percent purity rebounded sharply, surpassing the Rs 96,000 mark. It had last settled at Rs 89,750 per 10 grams.
Silver too followed suit, jumping by Rs 2,300 to Rs 95,500 per kilogram, up from its previous closing of Rs 93,200. The precious metals rally comes on the back of Mahavir Jayanti, during which the bullion markets remained closed on Thursday.
In global markets, spot gold reached a new all-time high of USD 3,237.39 per ounce before easing to USD 3,222.04. COMEX gold futures also touched a record level of USD 3,249.16 per ounce amid growing concerns over economic slowdown and rising geopolitical risks.
Kayanat Chainwala, Associate Vice President (Commodities Research) at Kotak Securities, stated that heightened US-China trade tensions had boosted the appeal of gold. Earlier in the week, the US administration imposed tariffs of up to 145 percent on Chinese goods, prompting China to retaliate with duties as high as 125 percent.
These tariff escalations have rekindled fears of a global trade war, weakening the US dollar index below the 100 mark and further supporting precious metal prices. Chainwala added that safe-haven demand for gold is likely to persist amid looming fears of inflation, recession, and continued geopolitical instability.
According to investment banking firm UBS, ongoing uncertainties in global financial markets are expected to continue enhancing gold's allure in the near term, as investors seek stability amid market volatility and economic headwinds.
