Gold prices have been witnessing a steady rise over the past few days, reaching an all-time high on Thursday, January 23. On this day, the price of 24-carat gold per 10 grams touched ₹82,900. However, a slight correction was observed at the beginning of the week on Monday, bringing the price down to ₹82,580 per 10 grams.

Many are now questioning whether this sudden surge in gold prices is linked to the return of Donald Trump as the new U.S. President. Let’s explore the connection.

Donald Trump’s Impact on Gold Prices

Following Donald Trump’s swearing-in as U.S. President on January 20, gold prices have been on an upward trajectory. Investor uncertainty regarding his economic policies and trade decisions has played a key role in this increase.

In just a week, gold prices in India surged from ₹81,273 per 10 grams to ₹82,900, marking a sharp rise of ₹1,692 per 10 grams. This trend indicates that Trump’s return to power has once again created volatility in global markets, making gold a preferred choice for investors.

Gold – The Ultimate Safe Haven Investment

The Trump administration’s trade policies, including the imposition of tariffs and sanctions, have escalated geopolitical tensions in the global economy.

• Trade restrictions with Mexico, Canada, and other nations have further fueled market instability.
• Investors seeking safe investment options have shifted their focus towards gold, traditionally considered a “safe haven” asset.

Experts predict that in the upcoming Federal Reserve policy meeting, interest rates may remain unchanged, potentially leading to:

• A decline in bond yields
• A weaker dollar index

These factors could increase gold demand, driving prices even higher in the near future.

Global Gold Prices Also on the Rise

The rising trend in gold prices is not limited to India; it has also been observed in the international market.

• Between January 20 and January 26, the U.S. dollar index dropped by 1.53%, declining from 109.35 to 107.67.
• During the same period, gold prices in New York’s Comex market surged from $2,748.70 to $2,799.47 per ounce, reflecting a 1.85% increase.

Gold Prices Surge by ₹5,800 in 70 Days

Over the past 70 days, gold prices have risen by nearly ₹5,800 per 10 grams.

• On November 15, gold was priced at ₹75,813 per 10 grams.
• By January 25, it had surged to ₹82,900 per 10 grams.

Analysts predict that if Donald Trump’s policies continue to disrupt global trade and the Federal Reserve keeps interest rates steady, gold prices could rise even further in the coming months.

Would you invest in gold now, or wait for a possible correction? Let us know your thoughts!