Gold prices soared to a record high on Friday after the United States imposed new tariffs on gold bars, driving up global prices and influencing the Indian market as well. Silver prices also surged, now trading above ₹1.15 lakh per kilogram.
What Caused the Surge?
As per US media, US Customs has reclassified 1-kg and 100-ounce gold bars under a tariff code that now attracts higher import duties. This change is likely to significantly impact global gold trade, particularly in countries like Switzerland, a key player in gold refining and exports.
Reuters noted that the futures-spot price spread widened by over $100 following a July 31 letter from US Customs and Border Protection, confirming the new tariff classification. This development is part of broader tariff measures introduced by President Donald Trump, affecting numerous imports and prompting major trade partners to reassess their strategies.
Why Are Gold Prices Climbing?
The surge is fueled by a combination of higher US tariffs, a weaker dollar, speculation about a potential Fed rate cut, and heightened global demand amid economic uncertainty. Gold’s role as a safe-haven asset continues to strengthen in turbulent times.
20-Year Trend:
Gold has returned over 1,200% since 2005, rising from ₹7,638 to over ₹1,02,000 in 2025, with a 31% gain this year alone.
