Gold Price Rises Amid Global Market Volatility: FM Sitharaman Offers Insights

Gold Prices Surge Amid Geopolitical Tensions and Global Tariff Threats

As of February 23, gold prices continued their upward climb, driven by escalating geopolitical tensions and renewed global tariff threats from US President Donald Trump. On the Multi Commodity Exchange (MCX), gold opened the session at Rs 160,049 per 10 grams for 24-carat purity, marking a 2.02% jump from the previous close.

In international markets, bullion maintained its strength, with gold trading at $5,182 per ounce on Comex during morning deals — up 2% over the past 24 hours. Silver ETFs jumped over 6%, while gold ETFs gained 2% due to the Trump tariff ruling and softer dollar.

Domestic benchmarks reflected a similar trend. The Indian Bullion Jewellers Association (IBJA) quoted standard gold (999 purity) at Rs 155,066 per 10 grams, up 0.33% from the previous session. These IBJA rates serve as the reference price for the Reserve Bank of India's Sovereign Gold Bonds (SGBs), which are valued based on the average closing price of the preceding week.

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Union Finance Minister Nirmala Sitharaman attributed the surge in gold prices to central banks globally buying a lot of gold. She also stated that the government will continue signing trade deals with other economies as they benefit the Indian economy. Additionally, she mentioned that global and political reasons might be behind the lack of funds flowing into India.