Ahmedabad: The city’s gold market witnessed a dazzling yet daunting surge, with prices hitting an all-time high of Rs 85,000 per 10g on Friday. This Rs 1,000 jump in just 24 hours mirrors a global gold rush, fuelled by geopolitical tensions and economic jitters. International prices soared to $2,804 per troy ounce, driven by escalating tariff wars and anticipation of a US Federal Reserve rate cut.
“The steep rise could dampen domestic demand, especially with the wedding season ahead,” said Haresh Acharya, director of India Bullion and Jewellers’ Association (IBJA).
Market analysts attribute the spike to growing tariff wars between multiple nations and anticipation of key economic policy changes.
“The US reaffirmed its stance on imposing a 25% duty on imports from Mexico and Canada, while additional tariffs on Chinese goods remain under consideration. In times of economic and geopolitical instability, bullion emerges as a favoured asset, keeping prices elevated,” he added.
Industry sources suggest that while some investors are cashing in on the rally, retail demand — typically strong in India during this time of the year due to the wedding season — may take a hit.