Gold prices surged as safe-haven demand strengthened amid renewed geopolitical tensions and global trade uncertainties.
US President Donald Trump on social media post said that he is ending “all trade negotiations” with Canada because of recent television ads protesting US tariffs, which he called “egregious behavior” aimed at influencing US court decisions.
On MCX, gold futures for December delivery gained ₹1,800 per 10 grams, or 1.48 per cent, to ₹1,23,657 rebounding from the previous session’s sharp decline.
On the global front, Comex gold futures for December delivery rose by $73, or 2 per cent to $4,139 per ounce on Thursday, recovering slightly after touching a record high of $4,398 per ounce earlier in the week.
The US sanctions on Russian oil majors and subsequent spike in crude oil prices has stoked demand for the yellow metal.
This apart, gold got support from the US decision to suspend trade talks with Canada and threatened to impose fresh export restrictions on China.
Additionally, expectations of two more US Federal Reserve rate cuts this year supported non-yielding assets like gold.
Goldman Sachs reaffirmed its bullish outlook, projecting prices to reach $4,900 per ounce by end-2026, citing structural investment demand and portfolio diversification trends.
Ajay Kumar, Director, Kedia Commodities said physical gold demand in Asia remained robust despite record prices.
In India, premium on gold prices surged to $25 per ounce — the highest in over a decade — ahead of key festive demand, though smuggling activity has reportedly increased due to elevated prices and supply tightness, he said.
In China, bullion traded at steep discounts of $20–$66 an ounce, reflecting weak local sentiment, while premiums in Hong Kong, Singapore, and Japan remained modest.
Darshan Desai, CEO – Aspect Bullion & Refinery said gold prices will be guided by the release of US CPI data, updates on the US government shutdown and next week’s meeting between US President Donald Trump and Chinese President Xi Jinping.
A successful trade agreement between the two nations could put downward pressure on gold prices, while any escalation in US-Russia tensions or sanctions could help support prices at lower levels, he added.
Published on October 24, 2025
