Gold Surges to Historic $3,300 Per Ounce, Approaches Rs 1 Lakh Mark in India
April 17, 2025 - Gold prices have shattered previous records, soaring past the $3,300 per ounce milestone in international markets on Wednesday amid escalating US-China trade tensions. The precious metal reached an unprecedented high of $3,318 per ounce, pushing domestic prices to the brink of the psychological Rs 1 lakh per 10 grams barrier.
Record-Breaking Surge Across Markets
The intensification of the tariff war between the United States and China has triggered a dramatic flight to safe-haven assets, propelling gold to historic levels in both international and domestic markets.
- In Delhi, gold surpassed the Rs 98,000 mark, trading at Rs 98,100 by Wednesday evening
- On the Multi Commodity Exchange (MCX), gold futures for June delivery reached an all-time high of Rs 95,435
- International spot prices climbed to $3,318 per ounce, setting a new global benchmark
"Gold rose to a new record high, surpassing the previous all-time peak set on Monday. Traders were whip-lashed again by a slew of tariff headlines; in the latest, US President Donald Trump ordered a probe into critical minerals, sparking a move toward safe haven assets," said Saumil Gandhi of HDFC Securities.
Unprecedented Price Velocity
What makes this rally particularly remarkable is the speed at which prices have climbed. Since April 8, when gold was trading at $2,982 per ounce, prices have surged by $336 per ounce – representing an extraordinary 11% increase in just eight days.
Industry experts describe this as the fastest rise in gold prices over an eight-day period, confirming what many are calling a "parabolic movement" in the precious metal's valuation.
Impact on Consumer Behavior and Market Dynamics
The skyrocketing prices have significantly altered consumer behavior in the gold market. Avinash Gupta, Vice-Chairman of the All India Gem & Jewellery Domestic Council, noted that the steep price rise has dampened consumer appetite for gold.
"Because of this steep price rise, gold is selling at a discounted price of 1-2% of the actual landing cost in India," Gupta explained.
This unusual market dynamic has created a situation where gold is trading at a discount to import prices in local markets – a clear indication of suppressed retail demand despite the bullish trend.
Surendra Mehta, National Secretary of the India Bullion and Jewellers' Association, highlighted an unprecedented phenomenon: more consumers are visiting jewelers to sell or exchange old gold than to make new purchases.
Profit-Booking and Portfolio Rebalancing
Market analysts suggest that the current price surge may be creating opportunities for strategic profit-booking, particularly for investors facing losses in other asset classes.
"Whenever prices go up so drastically, consumer sentiments do take a beating, impacting retail sales. But in this case I suspect those who have run up losses on the stock markets may be booking profits in gold to offset their losses," observed Gupta.
This trend points to gold fulfilling its traditional role as a portfolio hedge during periods of market volatility and economic uncertainty.
Silver Lags Behind in the Precious Metals Rally
While gold has captured headlines with its record-breaking performance, silver has failed to match its pace. On Wednesday, international spot prices for silver stood at $32.8 per ounce, with domestic prices crossing the Rs 1 lakh per kilogram mark in Delhi spot markets.
Industry experts attribute silver's relatively subdued performance to its stronger ties to industrial demand, which is currently under pressure from recession fears sparked by the ongoing trade tensions.
"The demand for silver is primarily driven by industrial demand but the tariff wars are threatening to spark off a recession. If these trade wars settle down, silver is the only metal that will rise at a quick pace," Gupta explained.
Outlook Remains Bullish
Despite the extraordinary gains already realized, market experts anticipate that gold's bullish momentum may continue in the near term. The combination of geopolitical tensions, trade uncertainties, and the metal's traditional appeal as a safe haven during turbulent times continues to drive investor interest.
As international relations remain strained and market volatility persists, gold appears positioned to maintain its upward trajectory, potentially breaking through additional price milestones in the coming weeks.
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