Gold is on the move again. Prices are pushing toward record highs, and investors around the world are watching closely. Why is this happening? What’s behind the surge? More importantly, will it last?
As of March 13, 2025, gold futures closed at $2,991.30 per ounce. Then, just hours later, they broke past the $3,000 mark, hitting $3,001.30. That’s a 0.33% increase in a single session. And this isn’t an isolated spike—gold has been climbing for weeks. Inflation fears, global trade tensions, and a weaker U.S. dollar are fueling the rally. With uncertainty mounting, investors are rushing to gold as a safe haven.
Gold Prices Around the World
Gold isn’t just rising in the U.S. It’s gaining across major markets. Futures contracts show a clear uptrend, with prices consistently breaking past key levels. On March 13, gold traded between a low of $2,942.20 and a high of $3,001.50. Compare that to its 50-day average of $2,822.63 or its 200-day average of $2,606.90, and it’s obvious—gold is on a sustained upward trend.
Spot gold is keeping up, too. As of this week, spot prices sit at $2,916.69 per ounce. U.S. gold futures aren’t far behind at $2,922.30. Demand is high, and trading volumes reflect it. Over 236,000 contracts changed hands in the latest session, dwarfing the average of just 4,077 contracts. More investors are betting on gold than ever before.
India’s Gold Market Soars
In India, gold demand is surging ahead of the Holi festival. It’s a time of year when gold buying traditionally spikes, and prices are responding. On March 12, 24-carat gold in India jumped by Rs.490 per 10 grams, reaching Rs.87,980. Meanwhile, 22-carat gold climbed by Rs.450 to Rs.80,650. Even 18-carat gold saw a Rs.370 increase, landing at Rs.65,990.
Bulk buyers are feeling the price surge, too. Buying 100 grams of 24-carat gold now costs Rs.8,79,800, up Rs.4,900. The same quantity of 22-carat gold is Rs.8,06,500, reflecting a Rs.4,500 rise. Hyderabad saw prices hold steady at Rs.7,971 per gram for 22-carat and Rs.8,696 per gram for 24-carat gold. After sharp gains earlier in the week, a temporary pause might be setting up for the next move.
Meanwhile, India’s MCX gold futures (set to expire April 4, 2025) dipped slightly by 0.14% to Rs.86,030. But analysts remain bullish, expecting prices to rise toward Rs.86,500 if support holds above Rs.85,500.
Silver Joins the Rally
Gold isn’t the only precious metal seeing action—silver is making big moves, too. In India, silver prices skyrocketed by Rs.2,000 per kilogram on March 12, reaching Rs.98,000. For smaller buyers, 100 grams of silver now costs Rs.10,000, up Rs.200.
Silver futures are holding strong as well. MCX Silver May contracts traded 0.25% higher at Rs.98,381. Analysts expect further gains, with Rs.99,000 being a key target as long as support holds at Rs.97,200.
In global markets, silver faced a slight dip, slipping 0.5% to $32.76 per ounce. But given its recent surge—over 2.5% in the previous session—investors aren’t too worried. Silver tends to be more volatile than gold, and this kind of movement is expected.
What’s Fueling Gold’s Rise?
Several factors are pushing gold higher. One of the biggest is the weakening U.S. dollar. Right now, the dollar index is hovering near a four-month low of 103. When the dollar drops, gold becomes cheaper for international buyers, driving up demand.
Then there’s the U.S. Treasury market. Yields on 10-year bonds are falling, making gold more attractive. Gold doesn’t pay interest, so when bond yields drop, investors shift into gold as a safer option.
Geopolitics are playing a role, too. The U.S. just implemented a 25% tariff on steel and aluminum, effective March 12. Investors fear a new trade war, which could slow global economic growth. When uncertainty rises, so does gold.
And let’s not forget inflation. Gold is a classic hedge against rising prices. Investors are watching U.S. Consumer Price Index (CPI) data closely. If inflation stays hot, the Federal Reserve might hold off on cutting interest rates. That would keep gold’s bullish momentum intact.
What’s Next for Gold?
Analysts largely agree—gold still has room to run. ICICI’s Daily Research Report expects spot prices to push toward $2,930 in the near term. If that resistance breaks, $2,950 is next. Support is seen at $2,890, meaning any pullbacks could be short-lived.
In India, festival demand should keep gold strong, at least in the short term. But the bigger picture will depend on inflation, interest rates, and the dollar’s performance. Any surprises from the Federal Reserve could shake up gold’s trajectory.
For now, gold remains one of the strongest assets in 2025. Prices have already tested $3,000 per ounce. With global uncertainty mounting, the question isn’t whether gold will stay strong—it’s how much higher it can go.
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