5 key factors behind gold hitting all-time high

The gold rate surged to an all-time high of Rs 82,840 per 10 grams on February 3, 2025, primarily due to rising safe-haven demand triggered by global trade tensions.

The key factors behind this increase include:

1. US Tariff Impositions: US President Donald Trump’s aggressive tariff policies, including a 25% tariff on Canada and Mexico and a 10% tariff on China, spooked global markets. Additionally, Trump’s threats of further tariffs on the European Union and BRICS nations heightened fears of a trade war.

2. Safe-Haven Demand: As geopolitical tensions escalated, investors turned to gold, which is traditionally seen as a safe asset during periods of uncertainty. This led to a significant increase in gold allocations.

3. Dollar Rally: The US dollar strengthened in response to the tariff impositions, which typically pushes gold prices higher.

4. International Market Movement: Gold traded higher internationally, with the price reaching $2,805 per ounce.

5. Indian Market Factors: The Indian government maintained the status quo on import duties for gold and silver in the Union Budget, which provided further support to metal prices in the domestic market.

This combination of factors has contributed to gold reaching its highest-ever price.