In an unprecedented move that has left investors ecstatic, gold prices hit an all-time high of ₹94,573 per 10 grams in the Indian domestic market on Wednesday, April 16, 2025. This surge isn’t just a domestic phenomenon—global gold benchmarks also skyrocketed, signaling a worldwide rush toward the yellow metal amidst rising geopolitical tensions and economic uncertainty.
Gold Hits Record High in Domestic and Global Markets
As trading opened on India’s Multi Commodity Exchange (MCX), the benchmark June contract surged by ₹1,122 to open at a historic ₹94,573 per 10 grams before briefly retreating to ₹94,311. It still held strong at ₹94,316, reflecting a 0.93% gain from the previous session.
Simultaneously, global spot gold hit an all-time high of $3,277.87 an ounce, while US gold futures climbed to a jaw-dropping $3,300 an ounce, underscoring the robust global appetite for the safe-haven asset.
📌 Also Read: Gold ETFs Attract $8.6 Billion in March 2025
What’s Driving the Gold Boom?
1. US-China Trade War Intensifies
The recent escalation in trade tariffs between the US and China has created significant ripples across global financial markets. With the US slapping a 145% tariff on Chinese goods, and China retaliating with up to 125% tariffs on US imports, the prospect of a full-blown trade war looms large. This rising uncertainty has made gold a go-to asset for risk-averse investors worldwide.
2. Declining Interest Rates and Global Slowdown
Central banks across the world, including the US Federal Reserve, are considering rate cuts amidst fears of economic stagnation and rising inflation. This macroeconomic backdrop is fueling bullish sentiment for gold, which is traditionally considered a strong hedge against both inflation and currency devaluation.
Investment Demand: The Core Driver Behind the Rally
Record-Breaking ETF Inflows
According to the World Gold Council, gold ETFs saw global inflows of $8.6 billion in March 2025, adding 92 tonnes to the overall holdings. This is the fourth consecutive month of strong ETF inflows, pushing total gold ETF holdings to 3,445 tonnes—the highest level since May 2023.
The Assets Under Management (AUM) for gold ETFs also hit a new record of $345 billion, up 12.74% from February, signaling immense retail and institutional participation.
🧭 Insight: Gold ETFs Becoming the Most Reliable Hedge in 2025
Central Banks Are Buying—Especially China
Another critical driver of this rally is the resurgence in gold purchases by central banks, particularly China’s People’s Bank of China (PBoC). In March 2025 alone, PBoC added 3 tonnes of gold, bringing its five-month total to 13 tonnes and pushing its total reserves to 2,292 tonnes.
The share of gold in China’s forex reserves has climbed from 4.6% in March 2024 to 6.5% in March 2025. In comparison, India’s gold share now stands above 11%, leading many analysts to suggest that China could aim for a minimum 10% share, further driving up gold demand.
Geopolitical Tensions Are Not Easing Anytime Soon
As Donald Trump’s trade policies take a more aggressive stance, and with the 2025 US elections on the horizon, the possibility of deeper geopolitical turmoil cannot be ruled out. In such an environment, gold emerges as the most stable asset, leading to sustained upward momentum.
Expect More Central Bank Action
It is expected that China’s central bank, and potentially others like Russia and Turkey, could further accelerate their gold purchases to diversify away from dollar reserves. This will provide a strong foundation for future gold price appreciation.
📰 Related: How Geopolitics is Reshaping Global Gold Demand
How Far Can Gold Go in 2025?
Expert Projections Vary, But Outlook Remains Bullish
Most analysts agree: gold is in a multi-year bullish cycle. Here’s what top experts predict:
Bank of America forecasts gold could test $3,500 an ounce by the end of 2025.
Kotak Securities expects domestic gold to hit ₹97,000–₹98,000 per 10 grams in the next quarter.
JP Morgan sees gold as potentially reaching $4,000 an ounce in case of prolonged stagflation.
The combination of central bank purchases, ETF inflows, economic slowdown, and rising inflation makes a compelling case for continued upward movement.
What Should Retail Investors Do Now?
1. Use SIPs in Gold ETFs or Digital Gold
If you missed the early rally, it’s not too late. Consider Systematic Investment Plans (SIPs) in gold ETFs or digital gold to mitigate risk and capture upside potential.
2. Stay Updated with Central Bank Actions
Track the monthly gold reserves update from central banks like China and India. Central bank purchases can signal long-term bullish sentiment.
💡 Pro Tip: Monitor RBI’s Gold Holdings on INVC
3. Don’t Chase the Peak, Watch for Corrections
Gold, like any other asset, will have short-term pullbacks. Use these corrections as buying opportunities, not panic triggers.
Conclusion: Gold is Shining Bright—and It’s Not Over Yet
In a world marred by tariff wars, rate cuts, inflation, and geopolitical chaos, gold has re-emerged as the ultimate financial fortress. With global central banks doubling down, investment funds pouring in, and market uncertainty at an all-time high, the current momentum shows no signs of slowing.
For those who had faith in the yellow metal, this rally has already made them richer. For others, there’s still time to join the party—but wisely, strategically, and with a long-term outlook.
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