Gold prices have climbed once again as multiple factors—geopolitical tensions, a weaker dollar, and economic uncertainty—continue to drive demand for the precious metal. On March 3, gold saw an uptick in value, bolstered by the global economic environment and rising geopolitical risks.
Current Gold Prices in India: March 3, 2025
- 22-Carat Gold: ₹79,400 per 10 grams
- 24-Carat Gold: ₹86,620 per 10 grams
- 18-Carat Gold: ₹64,970 per 10 grams
These rates reflect steady prices in India, with gold maintaining its upward momentum globally.
Factors Fueling Gold’s Price Surge
1. Geopolitical Tensions and Safe-Haven Demand
Gold prices rose as the geopolitical situation continued to stoke investor fear. The delay in the anticipated peace deal between Ukraine and Russia contributed to the growing uncertainty in the global markets. Kelvin Wong, a senior market analyst at OANDA, explained that the early bullish trends in gold are likely tied to these geopolitical risks.
2. US Economic Uncertainty and Tariff Policies
The financial markets are also responding to uncertainty in US policy. Former US President Donald Trump’s recent announcement of additional tariffs on Chinese goods, along with a new set of tariffs on Canada and Mexico, has raised concerns about global trade dynamics. This uncertainty, combined with rising inflation in the US, further bolstered gold’s appeal as a safe-haven asset.
3. Weaker Dollar Enhances Gold’s Affordability
A drop in the dollar index—by 0.4%—made gold more affordable for holders of other currencies. This contributed to gold’s upward momentum, as lower dollar value tends to boost demand for precious metals globally.
4. US Economic Data and Federal Reserve’s Interest Rate Policy
US economic data released on February 28 indicated a surprising drop in consumer spending for January. However, rising inflation could delay interest rate cuts by the Federal Reserve, which traditionally weakens the appeal of gold. Despite this, gold continues to serve as a hedge against economic and geopolitical uncertainties, maintaining strong demand.
Gold’s Appeal in Uncertain Times
Gold’s enduring value as a safe-haven asset is clear as markets remain on edge. As geopolitical tensions rise and US tariffs threaten global trade stability, investors are turning to gold to safeguard their wealth. Despite challenges like higher interest rates, the precious metal remains a go-to for those seeking stability.
Spot Gold and Futures Performance
- Spot Gold: Rose 0.3% to $2,866.76 per ounce at 0303 GMT.
- US Gold Futures: Increased 1.1% to $2,880.50 per ounce.
Why Gold Prices Are Climbing
Gold’s rise is directly tied to a series of global events, including geopolitical risks, US tariff policies, and economic uncertainties. As the demand for safe-haven assets continues to grow, gold remains an attractive investment choice, particularly in volatile times.