Priyanka Tiwari
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On April 10, global gold prices recorded their largest single-day gain in 18 months after U.S. President Donald Trump announced a 90-day pause on tariffs for at least 75 countries. Spot gold jumped 1.6% and is now trading near $3,150 an ounce, approaching its April 3 high of $3,167.57.
China Tariffs Still in Effect
While most countries received a temporary reprieve, the U.S. raised tariffs on Chinese imports to 125%, maintaining pressure on Beijing amid broader trade negotiations. In response, China increased its own tariffs on U.S. goods to 84%.
Indian Gold Prices and Demand Outlook
In India, gold prices surged accordingly:
24K Gold: ₹9,338 per gram
22K Gold: ₹8,560 per gram
18K Gold: ₹7,004 per gram
This aligns with global trends and sustained demand in the Indian market, often driven by economic uncertainty and inflation concerns.
Dollar Weakness Supports Gold
The U.S. Dollar continues to trade under the 103 level, undermined by shifting sentiment over the Trump administration’s trade strategies. The weaker dollar typically supports gold prices by making the metal cheaper for buyers using other currencies.
Analyst Outlook and Fed Speculation
Dominic Schnider of UBS Global Wealth Management expressed optimism for gold’s future performance. He noted that the Federal Reserve could soon take action, potentially giving another boost to gold markets.
Treasury Yield Pullback and Market Conditions
The 10-year U.S. Treasury yield, which reached 4.5% recently, has eased to below 4.3%. Lower yields often enhance the appeal of non-interest-bearing assets like gold.
Gold ETF Demand Surges
According to the World Gold Council, gold-backed ETFs experienced their strongest quarterly inflows in three years during Q1 2025, signaling robust investor confidence in the yellow metal as a safe-haven asset.
Portfolio Diversification Advice
Rahul Singh of Tata Asset Management emphasized the value of gold in diversified investment strategies. He recommended a focus on large-cap, flexi-cap, and multi-asset funds with gold exposure to mitigate risks amid ongoing market volatility.
Inflation Data in Focus
Investors now await key inflation indicators — the U.S. Consumer Price Index (CPI) on Thursday and the Producer Price Index (PPI) on Friday — which could influence future gold trends.
