_*Gold prices have recently reached unprecedented levels, with 24-karat gold priced at ₹8,624 per gram in India as of February 5, 2025. This surge is attributed to escalating geopolitical tensions, particularly the trade conflict between the United States and China. China's imposition of tariffs on U.S. imports in response to new U.S. duties has heightened economic uncertainties, prompting investors to seek the safety of gold.*_ In the international market, spot gold has risen by 0.5% to $2,855.32 per ounce, setting a new record. Analysts suggest that if trade tensions persist, gold prices could climb even higher, potentially reaching $3,000 per ounce. In India, the world's second-largest gold consumer, demand dynamics are shifting. While the high prices have dampened jewelry purchases, investment demand remains robust, with a 29% increase in 2024. The World Gold Council anticipates that total gold consumption in India may moderate to between 700 and 800 metric tons in 2025, down from 802.8 tons the previous year, primarily due to the elevated prices. Globally, central banks have been significant contributors to gold demand, purchasing over 1,000 tons for the third consecutive year in 2024. Investment demand also surged by 25% to 1,180 tons, driven by economic uncertainties and a halt in outflows from gold exchange-traded funds. Given the current geopolitical and economic landscape, gold is expected to maintain its appeal as a safe-haven asset. Investors are advised to monitor these developments closely, as they will likely continue to influence gold prices in the foreseeable future.