Gold prices jumped sharply on Thursday, April 24, rebounding over 1% after hitting a one-week low in the previous session. The surge was driven by bargain buying and renewed geopolitical concerns.
Spot gold rose 1.5% to $3,335.39 an ounce early in the day.
US gold futures mirrored the gains, trading at $3,344 an ounce.
In India, gold was priced at ₹98,240 per 10 grams for 24 karat, ₹90,050 for 22 karat, and ₹73,680 for 18 karat, according to Goodreturns.
Gold sees sharp swings, but outlook stays positive
Prices had dipped below $3,300 per ounce on Wednesday (April 23) after reaching a record $3,500.05 an ounce earlier this week. However, technical factors and investor sentiment triggered a quick rebound.
“The kind of volatility we’re seeing this week is being driven by technicals and headline risk. But the fundamentals are strong, so dip buying is effectively a function of investors moving in on the basis of the bigger picture,” said Kyle Rodda, market analyst at Capital.com.
Trade tensions, dollar drop, and risk sentiment in focus
Comments from US Treasury Secretary Scott Bessent added to the positive momentum. He acknowledged that the high tariffs between the US and China were “unsustainable” and hinted at a potential reduction, though Trump has not committed to any unilateral cuts.
Meanwhile, the dollar index slipped 0.3%, making gold more affordable for overseas investors.
Traditionally a hedge against economic and political instability, non-yielding gold continues to attract inflows despite intermittent corrections.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL), attributed the recent surge in gold prices to geopolitical uncertainty and a weakening dollar.
Investment outlook: Bullish with caution
While prices may remain volatile in the short term, the overall trend remains upward, supported by macro uncertainties, central bank buying, and safe-haven demand.
“Unless the US decisively shifts its trade policy and global tensions ease significantly, gold is likely to maintain its bullish bias,” Rodda added.
–With Reuters inputs