Gold prices today: Trump’s recent tariff call has sent another shockwave across markets as investors are flocking to gold once again. The yellow metal surged past the record Rs 88,000 mark before cooling off a bit as volatility continued to keep the commodity market on edge.
Trump recently imposed a straight 25% tariff on all steel and Aluminium exports. This pushed the Indian stock market into a pure bloodbath on Tuesday. Metal stocks went down as investor sentiment turned even more pessimistic. The domestic industry was already facing heightened pressure owing to cheaper steel imports, eating their margins. Plus, the uncertainty over potential trade wars in the upcoming months is adding to the dampening outlook.
"President Trump’s latest tariffs threats have ignited another gold rush, propelling safe haven asset to new highs, helping prices sail smoothly past $2900 on COMEX (commodity exchange). Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25% 'without exceptions or exemptions' in a move to aid the struggling industries but which increases the risk of a multi-front trade war," said Navneet Damani, head – commodities research, wealth management at MOFS.
Back to gold, there is no doubt that the commodity has witnessed a strong rally since the beginning of this year, with signals already indicating that the 2025 price trajectory might mirror last year's gains. However, with key macro data releasing this week, analysts and gold experts believe that volatility might be high this week.
During early morning trade, Gold jumped to Rs 86,350 on MCX and $2,942 on Comex as tariff worries sparked panic buying. Meanwhile, central banks kept adding to their gold reserves.
Even as investors rush towards the yellow metal, the cautionary banner of prospective fluctuations this week might continue.
Gold Price Ahead
According to the GoodReturns website, the price of 24-carat gold witnessed a marginal surge on Wednesday, with ten grams of the yellow metal trading at Rs 87,390. The price pullback is primarily owing to the upcoming US inflation data set for release this week and Jerome Powell's testimony. The Dollar index also took a breather, settling at $108.
"The upcoming US CPI data and Jerome Powell's testimony will be key events for gold traders, as the dollar index remains around $108. Gold is expected to trade with high volatility in the Rs 84,850-Rs 85,900 range" said Jateen Trivedi, VP research analyst - commodity and currency, LKP Securities
Besides panic buying, supply concerns are also well-present in the gold market as another 900,000 ounces were added to exchange vaults. As per analysts, this might signal that the ongoing supply squeeze is far from over. "Supply panic continue to build in as another 900K/oz was deposited in COMEX vaults signaling the squeeze still continues," Damani said.
