Gold Inches Closer to $3,400, But Silver Shines Brighter at All-Time Peak

Gold prices continued their upward climb on July 14, nearing the $3,400 per ounce mark globally, as escalating trade tensions and market uncertainty prompted investors to seek shelter in safe-haven assets. The rally comes in response to a string of aggressive trade moves announced by US President Donald Trump, turning investors across the globe anxious.

COMEX gold briefly surged to a two-week high of $3,381.60 per ounce on Friday before closing slightly lower at $3,364. The gains extended into Monday, with prices touching $3,389.30. The momentum was largely fuelled by Trump's latest tariff announcement, a 30% duty on imports from Mexico and the European Union, set to take effect from August 1. This adds to earlier tariffs imposed on Canada and Brazil last week, with Trump also signalling plans to raise blanket tariffs from 10% to potentially 20%.

"The spike in gold prices follows renewed trade tensions, particularly the US President's threat of fresh tariffs on the EU and Mexico," said Kaynat Chainwala, AVP–Commodity Research at Kotak Securities. "Investor concern has deepened as talks remain stalled, and uncertainty over the future of Fed Chair Jerome Powell adds another layer of unease to the market."

Indeed, President Trump’s remarks suggesting that it would be "great" if Powell stepped down have sparked fresh concerns over the Federal Reserve's stability and independence, further boosting demand for gold.

Aksha Kamboj, Vice President of the India Bullion and Jewellers Association, noted that while some room remains for negotiation until August 1, the possibility of a rapid escalation has weighed on risk assets. “This uncertainty is driving investors into haven assets like gold. However, strength in the US dollar, ironically driven by these same trade tensions, may temper gold’s upside in the near term,” she said. Market participants are also watching out for upcoming inflation data and a busy week of corporate earnings, both of which are expected to shape gold’s near-term trajectory.

In India, gold’s August contracts on the Multi Commodity Exchange (MCX) opened at ₹97,967 per 10 grams today, reflecting the metal's global bullish tone.

Silver, meanwhile, stole the spotlight by hitting a fresh lifetime high in the domestic market. September futures on the MCX surged to ₹1,14,875 per kg, while December contracts touched ₹1,16,566.

Back home, silver has risen 21% in the past three months—far outpacing the 5% gain in gold. The contrast is sharp compared to last year, when gold outperformed with a 34% surge against silver’s 23% rise. Indian investors, traditionally focused on gold, are now increasingly turning to silver as it delivers stronger returns amid record-high domestic prices and global supply concerns.

“Silver extended its rally to $36.40 globally, a level last seen in 2011, as safe-haven demand spilled over. If President Trump remains hawkish on tariffs, gold and silver could see further upside,” said Rahul Kalantri, VP–Commodities at Mehta Equities. He added that gold has near-term support at $3,335–$3,315 and resistance at $3,374–$3,390, while silver's support and resistance levels stand at $38.20–$37.90 and $38.80–$39.00 respectively.

As geopolitical risks remain elevated and policy uncertainty looms large, both gold and silver are expected to remain in focus. Investors now look to key economic indicators and further policy cues from major central banks for clarity on the path ahead.