Gold Rate Today: In Mumbai, India, the price of 10 grams of 24K gold has reached ₹86,630. This increase comes as the US Dollar Index remains near 106.6.
Gold prices have been steadily rising for the past few months. A surge in gold prices was also recorded on Tuesday, February 18th. Analysts believe this increase is a result of growing concerns over US President Donald Trump's tariff policies. Fears of a global trade war are driving investors towards safe-haven assets, with gold being the primary beneficiary.
Current Gold Price
Spot gold has increased by 0.2%, reaching $2,903.56 per ounce, while US gold futures are trading at $2,916.80 per ounce, up 0.6%.
In India, the price of 10 grams of 24-karat gold has reached ₹86,630 in Mumbai and other major cities. This increase coincides with the US Dollar Index remaining at the 106.6 level.
Will Gold Prices Rise Further?
According to a CNBC report, Kyle Rodda, a financial market analyst at Capital.com, states that increased buying by central banks and the potential for a recession in Europe have increased gold demand. Furthermore, the rush by investors to move gold to the US to avoid tariffs is expected to further fuel price increases.
Federal Reserve Governor Michelle Bowman has indicated she would prefer to see further improvement in inflation before supporting interest rate cuts. However, ongoing uncertainty surrounding trade policies is bolstering gold demand. Meanwhile, Goldman Sachs has revised its gold price forecast, suggesting a potential price of $3,100 per ounce by the end of 2025.
Impact on India's Jewelry Market
Uncertainty in global trade policies is impacting India's gems and jewelry market. According to Gem & Jewellery Export Promotion Council (GJEPC) data, India's gems and jewelry exports declined by 7.01% in January 2025, while imports saw a significant drop of 37.83%.
