Tariff Uncertainties to Keep Gold Prices in India Hovering Between ₹87,000-₹90,000 in First Half of 2025: Report

New Delhi [India], March 29 (ANI): Uncertainties regarding U.S. tariffs may cause gold prices to rise to between Rs 87,000 and Rs 90,000 during the first six months of 2025 (from January to June). This forecast was included in a report released by ICICI Bank Global Markets.

At present, public data indicates that the price of 22-carat gold is approximately Rs 83,410 per 10 grams, while 24-carat gold costs about Rs 90,990 per 10 grams.

The report further noted that the ambiguities caused by the tariffs will maintain the investment-driven demand for gold.

Starting from April 2, the Trump administration plans to introduce retaliatory tariffs on trade partners under what they call their "Fair and Reciprocal Tariff Plan."

In India, local gold prices increased by 4 percent over the last month, mirroring the global market movement and a 2 percent strengthening of the rupee against the U.S. dollar.

"In the future, local gold prices are anticipated to show an upward trend, ranging from INR 87,000 to Rs 90,000 for ten grams during the first half of 2025 and then shifting to a range between Rs 94,000 to Rs 96,000 for ten grams in the second half of 2025," the report stated.

The report predicts that the price for an ounce of gold in international markets will likely fall between $3200 and $3400 by December 2025.

Additionally, the US Federal Reserve The possibility of reducing interest rates in 2025 and 2026 might enhance gold’s appeal, since decreased U.S. yields could boost demand for gold, according to the report.

According to the report, central banks might also opt to increase their holdings of gold as part of reserve diversification efforts, potentially maintaining stable pricing over the longer term.

Higher gold prices seem to be negatively impacting jewelry demand, leading to the lowest gold import figures over the last 11 months at $2.3 billion. This represents a 14% decrease from the previous month and a significant 63% drop compared to the same period last year. The report suggests that demand may recover due to increased purchases associated with festivals.

Nevertheless, investments in gold funds for local ETFs continue to be quite strong, as observed globally. Gold Council (WGC) has reported. Gold In February 2025, ETFs saw inflows amounting to Rs 19.8 billion, which exceeded the average monthly net inflow of Rs 14.8 billion observed over the previous nine months. (ANI)