Gold reclaimed its all-time-high price level of 89K, earlier this week after the implementation of a straight 25% tariff rate on Canada and Mexico by the US. This marks the beginning of the tariff imposition cycle, which the US President Trump has been so bullish about. This has in-turn raised concerns over a potential trade war as supply chain cost becomes more-and-more complicated. The looming uncertainty has forced investors to bet on safe-haven assets like Gold.
The cost of the yellow metal surged by over Rs 1,000, reclaiming the all-time-high price level of 89k back on Tuesday. So far this year, gold prices have surged by over 11.3% and commodity experts are already estimating more upside in the upcoming months, with some even predicting the commodity to touch the Rs 1 lakh mark (per 10 grams). This is largely owing to the increasing uncertainty in the global economic sphere. Trump's administration is expected to impose more tariffs across broader sectors in the coming weeks.
Gold Price Today
According to the GoodReturns website, the price of 24-carat gold witnessed a strong surge on Tuesday, with ten grams of the yellow metal trading at Rs 87,540.
"Gold remained positive as Comex gold surged over 1% to $2,920, supporting MCX gold, which gained Rs 700 but slightly underperformed due to minor rupee appreciation. The rally was driven by fresh tariff retaliations, with Canada and China imposing tariffs on the US, fueling safe-haven demand," said Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities
Last month alone, the cost of the yellow commodity witnessed an increase of nearly 4%. During the same time, domestic benchmark indices— Sensex and Nifty—failed to cheer investors and remained in red with negative returns of more than 5%.
Will Gold price rise further?
Commodity analysts believe so. As long as uncertainty prevails in the geopolitical landscape, investors will remain more attracted to the commodity rather than putting their money in other assets like equities. While near-term upside remains limited, experts are estimating a much stronger rally in the longer-run.
"On the economic front, key US data, including ADP Nonfarm Employment, Nonfarm Payrolls, and Unemployment figures, will be closely monitored. Gold is expected to trade within a range of Rs 84,500-Rs 86,750," said Trivedi.
