Explainer: Why gold prices are skyrocketing globally
Gold prices shot up this week after the US ended trade negotiations with Canada and hit Russian oil companies with new sanctions.
In India, December gold futures climbed ₹1,800 to ₹1,23,657 per 10gm, while global prices jumped $73 to $4,139 per ounce.
Rising crude prices and a rush for safe-haven assets—thanks to all the geopolitical drama—are driving the spike.
Gold's appeal
Gold is having a moment because people want stability when things get unpredictable.
In India, festive season demand has pushed premiums to a 10-year high—even with supply tight and smuggling on the rise.
Basically, gold is still the go-to when the world feels shaky.
Geopolitical tensions and gold
Trade tensions are heating up with the US ending trade negotiations with Canada and possibly restricting exports to China.
Sanctions on Russia are making oil pricier, which only adds to gold's appeal. Plus, expectations of two more US Fed rate cuts this year are giving gold extra support.
Everyone's watching for US inflation data and the upcoming US-China summit to see what happens next.