Unlike stocks or currency, gold is considered as a physical asset that safeguards the investor’s wealth during inflation or economic uncertainties. So that’s why gold, a bullion—an essential metal in Indian households for its distinctive qualities, has earned the name of a safe-haven. Moreover, since gold is influenced by currency, inflation, and global economic factors, stock market fluctuations serve as an additional factor in gold price movements.
The recent ongoing trade tensions globally, such as those of US President Donald Trump imposing an additional 25% tariff on Indian imports for purchasing russian oil, raising levies on South Korean imports from 15% to 25%, and threatening Canada with 100% tariff if it reaches a trade deal with China, have led to gold and silver price fluctuation.
Current Scenario
Every day, safe-haven assets experience volatility, leaving investors divided and cautious. Globally, a 0.1% decline in the US dollar helped push gold to a session high of $5,111, extending its gains to a sixth straight day and building on last year’s record rally. Meanwhile, silver surged even more strongly, breaking above $110 per ounce and driving the gold–silver ratio down to its lowest level since 2011.