Gold Prices Skyrocket Amid Global Turbulence, $3,100 Target Looms
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Synopsis
Gold prices are on a remarkable rise, with projections suggesting the precious metal may soon reach $3,100 per ounce. This surge is driven by geopolitical tensions, economic uncertainties, and the Fed's interest rate outlook.
Key Takeaways
- Gold prices may soon touch $3,100 per ounce.
- Gold serves as a safe-haven asset during instability.
- Geopolitical tensions in the Middle East are impacting prices.
- High inflation and economic uncertainty are driving demand.
- Gold ETFs and central banks are key demand drivers.
New Delhi, March 24 (NationPress) Gold prices are experiencing a significant upward trajectory, with experts forecasting that the precious metal could soon hit the $3,100 mark per ounce.
This increase comes in spite of stable prices on Monday, as investors reacted to a weaker US dollar and uncertainties surrounding US President Donald Trump’s tariff strategies.
Gold is widely regarded as a safe-haven asset, gaining popularity during periods of geopolitical and economic turmoil.
The metal has already achieved 16 record peaks in 2025, exceeding the $3,000 per ounce threshold on four separate occasions.
Last week, gold prices reached new all-time highs in both global and Indian markets. In India, 24K gold reached Rs 90,450 per 10 grams, while 22K gold rose to Rs 82,910 per 10 grams.
Globally, spot gold climbed to $3,049.89 per ounce, after briefly touching a record $3,055.96 per ounce earlier in the session. Meanwhile, US gold futures increased by 0.6 percent to $3,058.40 per ounce.
Several factors are driving the sharp rise of gold. Renewed conflicts in the Middle East, particularly Israel’s military actions in Gaza, have prompted investors to seek refuge in gold.
The potential for US tariffs under the Trump administration is also generating global economic uncertainty.
Persistently high inflation and concerns over slower economic growth are causing investors to hedge with gold.
Moreover, expectations of a US Federal Reserve interest rate cut have further enhanced gold’s attractiveness.
The Fed maintained interest rates at 4.25 percent-4.50 percent last week but indicated the possibility of two rate reductions by the end of 2025.
Lower interest rates diminish the opportunity cost of holding gold, making it a more appealing investment.
Reports indicate that central banks and Gold Exchange Traded Funds (ETFs) will continue to be key drivers of gold demand in 2025.
The Reserve Bank of India (RBI) has been consistently increasing its gold reserves, adding 72.6 tonnes in 2024. Gold now makes up 10.6 percent of the RBI’s total forex reserves.
Despite high prices impacting jewellery demand, investment in gold remains robust. Indian gold ETFs saw a net inflow of Rs 112 billion in 2024.
