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Gold rates in Delhi have surpassed ₹98,000 level amid the escalating tariff war between the US and China. As of April 16, gold stands at ₹98,100/10 gm.
Spot gold prices skyrocketed to $3,318 an ounce, breaching the $3,300 mark for the first time. What’s behind this rally?
Since the US has imposed reciprocal tariffs on its trading partners, gold has been on a bull run. The current geopolitical tensions are further boosting gold’s appeal.
Gold’s appeal as a safe asset is even stronger in the current times with the ongoing geopolitical instability, tumbling markets, and risks of recession.
US CPI data for March has raised expectations of a Federal Reserve rate cut in May or June, pushing gold prices higher.
A weak dollar makes gold more affordable for foreign investors. The recent dip in dollar value has contributed to gold’s bull run.
China invests in US Treasury bonds to maintain its export prices. In response to US tariffs as high as 245%, China may be offloading US Treasury bonds, further fueling gold’s rise.
Gold rates are expected to keep surging due to the rising geopolitical uncertainty. Goldman Sachs has increased its year-end price target for gold to $3,700 per ounce.
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