Existing investors should book partial profits in yellow metal

Amid escalating trade tensions and a weakening rupee, gold hit a record ₹1,03,420 per 10 grams in Delhi on August 8, 2025.

- HIMALI PATEL

Amid escalating trade tensions and a weakening rupee, gold hit a record ₹1,03,420 per 10 grams in Delhi on August 8, 2025. While existing investors should book partial profits to restore gold's allocation to its original level, new investors should enter gradually.

Why gold surged Sustained buying by central banks remains the key structural driver of this rally. "Central banks purchased 290 tonnes in the first half of 2025," says Riya Singh, research analyst, commodities and currency, Emkay Global Financial Services. Heightened geopolitical uncertainty of the past two years has also played a part. Tariff-related tussles have raised uncertainty. "Recent US tariff announcements briefly drove international prices to record highs of about $3,534 an ounce," says Puja Singh, chief executive officer (CEO), Manipal Fintech. Even as prices rose internationally, the rupee's depreciation against the US dollar made gold imports more expensive. Revised US labour market data, which erased 2,58,000 jobs, increased the odds of the US Federal Reserve cutting rates in September.