Gold prices soared by ₹700 to ₹99,370 per 10 grams in Delhi on Friday after investors rushed to buy the metal considered a safe haven in times of crisis.
Global trade tensions seem to have stoked investor worries after US President Donald Trump announced a 35 per cent tariff on Canadian imports from August 1.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at ₹98,670 per 10 grams on Thursday.
Also Read: Gold declines ₹700 to ₹98,420/10 g
Gold of 99.5 per cent purity jumped by ₹600 to ₹98,800 per 10 grams (inclusive of all taxes). It had ended at ₹98,200 per 10 grams in the previous market close.
In addition, silver prices rallied by ₹1,500 to ₹1,05,500 per kilogram (inclusive of all taxes) on Friday. The white metal had finished at ₹1,04,000 per kg on Thursday.
“Gold climbed on Friday as rising trade worries offset a generally steady US dollar. Global risk sentiment fell in response to US President Donald Trump's recent tariff threats, which heightened fears of a global trade war,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Trump also signalled plans for 15–20 per cent blanket tariffs on other trade partners.
Just when trade-related discussions were ongoing and things seemed to have settled on the tariff front, Trump announced sweeping duties on Brazil, Japan, South Korea and a host of other nations. Tariff-related uncertainty returned to the forefront this week and became a major factor driving investment toward safe-haven precious metals, Gandhi said.
On the market outlook, he stated that further tariff-related development will influence the trajectory for the precious metal prices in the near-term.
In the international markets, spot gold appreciated by USD 24.63 or 0.74 per cent to USD 3,348.67 per ounce.
Gold prices also found support following the release of the US Federal Reserve's FOMC (Federal Open Market Committee) meeting minutes on Wednesday, which showed a divided Fed, keeping interest rate-cut expectations alive, Axis Securities said in a brokerage note.
Spot silver also went up 1.64 per cent to USD 37.61 per ounce in the overseas markets.
According to commodities market experts, investors will wait for US Consumer Price Index (CPI) data for June, scheduled to be released on Tuesday, which will be a key trigger for the direction of bullion prices
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