
Gold prices surged by ₹550 to reach ₹99,120 per 10 grams in the national capital on Tuesday, driven by renewed buying interest from stockists amid global economic uncertainty. According to the All India Sarafa Association, the yellow metal of 99.9% purity had closed at ₹98,570 on Monday. Gold of 99.5% purity also saw a rise of ₹500, settling at ₹98,600 per 10 grams (inclusive of all taxes).
In contrast, silver prices remained unchanged for the third consecutive session, holding steady at ₹1,04,800 per kilogram.
Analysts attributed the uptick in gold prices to heightened demand for safe-haven assets following former U.S. President Donald Trump’s announcement of 25% tariffs on imports from Japan and South Korea, effective August 1. The move has reignited fears of a global trade war, prompting investors to seek refuge in gold.
“Gold reversed yesterday’s losses and traded higher as concerns about the potential resumption of a trade war grew,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. He noted that the uncertainty surrounding U.S. trade policy continues to support gold’s appeal as a hedge.
Internationally, spot gold prices dipped by 0.34% to USD 3,325.09 per ounce, reflecting mixed sentiment in global markets.
Market experts also pointed to other supportive factors, including weakening U.S. economic data, persistent inflation in developed economies, and sustained central bank purchases—particularly from countries like China and India. The weakening dollar since June has further enhanced gold’s attractiveness to global buyers.
With the U.S. Federal Reserve signaling a cautious stance on future rate hikes and investors closely monitoring upcoming inflation data and Fed commentary, analysts expect gold to remain resilient in the near term.
Meanwhile, silver’s flat trajectory suggests subdued industrial demand, even as gold continues to shine amid geopolitical and economic headwinds.