Posted on April 9, 2025, by Niftynews
Gold prices in India hit a new record high of Rs 89,662 per 10 grams on April 9, 2025, while silver prices surged to Rs 90,319 per kilogram. The sharp increase in prices follows rising US-China trade tensions, a weakened US dollar, and growing investor demand for safe-haven assets amidst geopolitical uncertainty.
Global Market Drivers Push Gold and Silver Prices Higher
The rally in gold and silver prices is largely driven by escalating concerns over global trade, particularly the US-China trade conflict. On the Multi Commodity Exchange (MCX), June gold futures jumped by 2.03% to close at Rs 89,662, while silver futures rose 1.77%, reaching Rs 90,319 per kilogram.
In the global market, the price of gold surged nearly 2%, touching $3,038.54 per ounce, with US gold futures rising to $3,056.60. Investors are flocking to gold as a safe-haven asset amidst fears of an extended trade war and potential economic slowdown. The recent US tariff imposition on Chinese imports, which has sparked fears of further escalation in the trade dispute, has weakened the US dollar, making gold more attractive.
US-China Trade Tensions and Weak Dollar Boost Gold
President Donald Trump imposed 104% duties on Chinese imports, accusing Beijing of currency manipulation. China has vowed retaliation, intensifying tensions between the two largest global economies. According to Tim Waterer, Chief Market Analyst at KCM Trade, the weakening of the dollar due to tariff worries has significantly contributed to gold’s price surge, which has now surpassed the $3,000 level.
Despite temporary resistance from rising US Treasury yields, analysts predict that gold may reach new all-time highs in the coming months, driven by ongoing economic instability and geopolitical concerns.
Record High for Gold: $3,167.57
Gold prices recently hit a historic peak of $3,167.57 on April 3, 2025, marking the highest levels since the 1980 Iranian Revolution, when political instability caused a similar surge in gold prices. Gold-backed ETFs also recorded their largest quarterly inflows in three years during the first quarter of 2025, further boosting demand for the yellow metal.
In the broader precious metals market, spot silver rose by 1.3%, reaching $30.23 per ounce, while platinum remained flat at $921.62 and palladium gained 0.9% to settle at $914.73.
Domestic Gold and Silver Prices Across Major Indian Cities
In India, gold prices saw substantial gains across key cities. On April 9, gold prices in Mumbai for 24K gold reached Rs 9,044 per gram, and 22K gold was priced at Rs 8,290 per gram. Similar price trends were observed in other major cities:
- Delhi: Rs 9,059 (24K), Rs 8,305 (22K)
- Chennai: Rs 9,044 (24K), Rs 8,290 (22K)
- Kolkata: Rs 9,044 (24K), Rs 8,290 (22K)
- Bangalore: Rs 9,044 (24K), Rs 8,290 (22K)
Silver prices in India also mirrored global trends, reaching Rs 90,319 per kilogram.
Market Outlook and Future Predictions
While gold and silver prices are currently experiencing significant volatility, analysts predict that the US-China trade war will continue to fuel demand for safe-haven assets. The uncertainty surrounding global trade relations and economic performance is expected to keep precious metals, particularly gold, in high demand.
Manoj Jain, Director at India Nivesh, cautioned that while gold and silver prices gained amid short-covering and bargain buying, the imposition of hefty US trade tariffs on China could limit further gains. He predicts that gold could maintain a support level at $2,888, while silver may hold steady above $28.00 per ounce in the short term.
Gold and silver prices are expected to remain volatile throughout the week, driven by ongoing global trade tensions and fluctuations in the dollar index.
Conclusion: Gold & Silver Prices Surge Amid Volatile Market Conditions
The significant rise in gold and silver prices on April 9, 2025, reflects growing investor interest in precious metals as a safe-haven investment. As US-China trade tensions continue to escalate and the US dollar weakens, both gold and silver are expected to remain strong contenders for investors seeking stability in volatile markets. With gold prices hitting new records and silver following suit, these metals could play a crucial role in protecting against economic uncertainty in the coming weeks.
