Gold prices surged to a new intraday high of $2,937.70 per ounce on February 10, 2025, continuing their upward momentum in the international markets. This represents a 1.73% increase from the previous day’s close of $2,887.60 per ounce. The rally underscores gold’s enduring appeal as a safe-haven asset amidst persistent geopolitical and economic uncertainties.
Factors Driving Gold’s Record-Breaking Rally
Several factors have contributed to the ongoing surge in gold prices:
Geopolitical Tensions and Economic Uncertainty
The global economy remains fraught with uncertainty, fueled by escalating tariff threats from U.S. President Donald Trump’s administration. These policies have heightened fears of a trade war, prompting investors to seek refuge in gold.
Central Bank Purchases
Central banks worldwide continue to ramp up their gold reserves, further driving demand. This trend reflects concerns over currency stability and the need for diversification amid volatile financial markets.
Weaker U.S. Dollar
A softer U.S. dollar has made gold more attractive to international buyers, adding upward pressure on prices. The dollar’s decline is partly tied to reduced confidence in global economic growth and fluctuating bond yields.
Technical Momentum
Gold’s breach of key resistance levels has reinforced its bullish trajectory. Analysts predict further gains, with some projecting targets above $3,000 per ounce in the near term.
Gold’s rise has been steady since the start of 2025, with prices already up 11% year-to-date. Analysts suggest that as long as geopolitical risks and economic uncertainties persist, gold will remain positioned for further gains.
On the domestic front, gold prices in India also hit record highs, crossing ₹85,000 per 10 grams in major cities such as Mumbai and Delhi. The rise reflects both international price trends and local market dynamics.
For investors, gold continues to serve as a hedge against inflation and market volatility. With its safe-haven appeal intact, the metal remains an attractive asset class for portfolio diversification. As of now, all eyes are on whether gold can sustain its momentum and break through the psychological $3,000 barrier in the coming weeks.
