Why did gold hit an all-time high of ₹86,360 per 10 grams today?
Gold has hit a record high in Indian and global markets over market uncertainties arising from potential US tariffs.
The price of 10 grams of gold hit an all-time high of ₹86,360 on the Multi Commodity Exchange (MCX) on Tuesday after US President Donald Trump fanned global market uncertainties over his tariff plans.
Globally, gold prices witnessed volatility over few hours - rallying to a record of $2,942 per ounce before pairing gains.
Also read: Sensex crashes 1,000 points over US tariffs fear, Nifty down 330 points
One of the primary reasons gold prices hit a high before dipping again was Trump's imposition of 25% tariffs on all types of steel and aluminium imports into the US. While announcing his decision, POTUS said the tariffs would come into effect in March and would bolster domestic production and create more jobs.
Gold prices have risen about 11% so far this year while setting successive records, mostly on Trump's disruptive policy decisions, including 25% tariffs on imports into the US from Mexico and Canada which he later took back.
Also read: Today Gold Rate 11-02-2025: Check latest prices in your city
Uncertainties regarding the US Federal Reserve's decisions are also causing volatility in gold prices as more and more people turn to the precious metal as a safe haven.
The benefits of investing in gold become more evident when the stock market experiences uncertainties, as has been the case today. While the Sensex has dipped over 1,200 points, the Nifty has also dipped nearly 400 points.
A rise in gold prices has been accompanied by inflows into bullion-backed ETFs as global holdings have risen for six of the past seven weeks, hitting the highest since November, according to Bloomberg.
Also read: Gold prices jump to record high amid Trump tariff fears
Multiple banks have forecasted that internationally, gold prices may rise to highs of $3,000 an ounce, with Citibank saying it expects the level to be hit within three months.
Among other precious metals, silver swung to loss, platinum fell, while palladium edged higher. The Bloomberg Dollar Spot Index was steady after climbing on Monday.
