Rise and shine: Global uncertainties will support a rally in gold prices

The correlation between demand for gold and high inflation is well documented and is likely to hold true into the foreseeable future

Gold has been the best-performing asset in 2025, gaining 28 per cent in dollar terms since January and hitting record levels. Its price has crossed ₹1 lakh per 10 grams in India, though profit booking occurred above the six-figure mark. The price has experienced wild fluctuations over the past month, partly reflecting the flip-flops in United States (US) tariff policy. After spiking to highs after “Liberation Day”, the precious metal lost some ground as US President Donald Trump moderated his stance on tariffs. But it has swung up again due to the continued macroeconomic uncertainties and the likelihood of higher