Gold Prices Skyrocket Past $3,400 Globally, Eyes ₹97,000 on MCX: Experts Predict Bullish Trend Ahead

The Chandigarh News | April 21, 2025

In a historic rally that has gripped global financial markets, gold prices surged past $3,400 per ounce on Monday, setting a new all-time high. The yellow metal is also approaching a record high in India, with MCX gold futures nearing ₹97,000 per 10 grams, sparking fresh interest from investors and analysts alike.

What’s Fueling the Gold Rush?

Several factors are contributing to this extraordinary rise in gold prices, both globally and domestically. According to financial experts, the rally is being driven by:

• Rising geopolitical tensions, particularly between the U.S. and China
• Trade war fears, fueled by former U.S. President Donald Trump’s reciprocal tariff plans
• Global economic slowdown and inflationary concerns
• Increased safe-haven demand from both retail and institutional investors
• Weaker U.S. dollar, which traditionally boosts demand for gold

A report by Motilal Oswal Financial Services Ltd (MOFSL) attributes the surge to “a combination of trade uncertainties, slowing growth, and central bank buying, which has turned gold into the go-to safe asset.”

In fact, gold has already jumped over 20% in 2025 alone and surged 40% over the past year, showcasing its resilience in times of market turmoil.

Central Banks and ETF Inflows Add Further Momentum

Supporting the bullish outlook, Tata Mutual Fund highlighted that central banks around the world are increasing their gold reserves, adding further pressure on supply and boosting prices.

“The Trump administration’s push for a weaker dollar, coupled with the uncertain effects of ongoing tariffs, has created a strong tailwind for gold,” the report noted.

Additionally, fears of a potential global recession have caused Exchange-Traded Funds (ETFs) to witness heavy inflows into gold-backed securities, further reducing availability and driving up demand.

Outlook: Will Gold Continue to Shine?

Experts believe the gold rally is far from over. According to the Tata Mutual Fund outlook, gold prices are expected to remain elevated in the medium to long term, supported by:

• Continued central bank buying
• Expectations of global interest rate cuts
• Persisting economic uncertainties
• Rising inflation concerns
• Increased geopolitical risks

“Although short-term corrections may occur—especially after a sharp 25% rally in just six weeks—historical trends show such corrections typically span 3–5 months. Long-term fundamentals remain supportive,” the report added.

Investor Insight

For investors in India, this could be a golden opportunity. With MCX gold heading toward ₹97,000 per 10 grams, savvy investors are advised to stay cautious yet optimistic. While short-term profit booking may cause fluctuations, gold’s role as a hedge against uncertainty remains stronger than ever.