Gold Prices Surge Amid Geopolitical Tensions and Trade War Fears
February 25, 2025 : Gold prices climbed in early trade on Tuesday, February 25, extending their overnight gains in global markets as investors sought refuge in the safe-haven metal amid escalating geopolitical tensions and looming trade war fears. The metal also found support from increased demand from domestic retailers and jewellers, even as the US dollar rebounded in early Asian trade.
The recent flare-up in the Russia-Ukraine conflict further bolstered gold’s appeal. Despite claims of seeking a resolution to the war, Russia launched its largest drone attack on Ukraine, intensifying geopolitical uncertainties. This development, coupled with fears of a potential global trade war, drove investors toward gold as a hedge against economic instability.
Domestic Gold Prices Rise
In the domestic markets, 24K gold prices rose to ₹87,880 per 10 grams, while 22K gold climbed to ₹80,560 per 10 grams. This marks a continuation of the upward trend observed on Monday, when 24K gold advanced by ₹100 to ₹87,870 per 10 grams, and 22K gold similarly gained ₹100 to ₹80,550 per 10 grams.
Across major Indian cities, gold prices showed slight variations. In Delhi, 24K gold traded at ₹88,030 per 10 grams, and 22K gold at ₹80,700 per 10 grams, reflecting a ₹10 increase over the previous close. Mumbai, Chennai, and Kolkata reported 24K gold prices at ₹87,880 per 10 grams and 22K gold at ₹80,560 per 10 grams.
Global Gold Trends
In the international markets, spot gold prices slipped marginally by 0.03% to $2,953 an ounce in early Asian trade on Tuesday, after hitting an all-time high of $2,956 an ounce on Monday night. The slight dip came as the US dollar regained some strength, limiting further gains in gold prices.
Silver Prices Follow Suit
Silver prices mirrored gold’s upward trajectory, rising by ₹100 to trade at ₹1,01,100 per kg in early trade on Tuesday. The white metal had already recovered by ₹500 on Monday, driven by firm global trends and increased demand from industrial users. However, the US dollar’s rebound capped silver’s gains.
In the international markets, spot silver prices rose by 0.18% to $32.42 an ounce in early Asian trade. Domestic silver prices remained consistent across Delhi, Mumbai, and Kolkata at ₹1,01,100 per kg, while Chennai reported a higher rate of ₹1,08,100 per kg.
Weekly Comparison of Gold and Silver Prices
Gold prices have gained for the second consecutive day this week, fueled by the Russia-Ukraine conflict and its impact on global markets. Silver prices have also traded higher, reflecting the broader trend in precious metals.
Here’s a comparison of gold and silver prices over the past week:
| Date | 22K Gold (per 10g) | 24K Gold (per 10g) | Silver Price (per kg) |
|————|——————— |——————— |————————|
| Feb 25 | ₹80,560 | ₹87,880 | ₹1,01,100 |
| Feb 24 | ₹80,550 | ₹87,870 | ₹1,01,000 |
| Feb 22 | ₹80,450 | ₹87,770 | ₹1,00,500 |
| Feb 21 | ₹80,250 | ₹87,750 | ₹1,00,400 |
| Feb 20 | ₹80,700 | ₹88,040 | ₹1,00,500 |
| Feb 19 | ₹80,350 | ₹87,650 | ₹1,00,500 |
| Feb 18 | ₹79,700 | ₹86,950 | ₹1,00,500 |
Outlook
Analysts predict that gold prices will remain volatile in the near term, driven by geopolitical developments and macroeconomic indicators. The ongoing Russia-Ukraine conflict, coupled with trade war fears, is likely to keep demand for safe-haven assets elevated. Meanwhile, silver prices are expected to follow gold’s trajectory, with additional support from industrial demand.
As global uncertainties persist, investors are likely to continue flocking to precious metals, ensuring that gold and silver remain in the spotlight in the coming weeks.
All rates mentioned are based on Mumbai market prices.