Gold Price Climbs Post Trump's Reciprocal Tariffs Announcement
The uptick in global gold prices is also expected to push the rates higher at India's MCX.
Gold price rose by 0.29% to $3,133.03 an ounce in the global market, after US President Donald Trump announced the imposition of reciprocal tariffs on all countries levying duties on American exports.
The gold futures for June climbed to $3,189.40 per ounce on the New York-based Commodities Exchange Inc., following Trump's "liberation day" announcements.
The uptick in global gold prices is also expected to push the rates higher at India's Multi Commodity Exchange, after it opens for trading on Thursday. The futures closed at Rs 90,764 per 10 gram on the MCX at 11:30 pm on Wednesday.
The rise in the value of the precious metal comes amid the uncertainty posed by Trump's imposition of tariffs, which could lead to global economic headwinds. In addition to the reciprocal levies, the US will also be imposing 25% tariffs on all automobile and auto component imports from Thursday.
Ahead of the tariff announcement, the demand for gold—a top safe-haven asset—began to surge. The metal's futures jumped to a record $3,177 per ounce on the COMEX on Tuesday. The MCX gold rates had also peaked to an all-time high of Rs 91,400 per 10 grams on Tuesday.
The further movement in gold prices will be dictated by the market's assessment of the scale of the US tariffs, and their potential impact on global trade, analysts said.
During the remainder of the week, "gold prices could rise to $3,180 per ounce on the COMEX and Rs 92,000 per 10 gram on the MCX," said Kaynat Chainwala, assistance vice president for commodity research at Kotak Securities Ltd., while responding to NDTV Profit's queries on Wednesday.
"With escalating trade disputes and geopolitical risks, gold’s bullish momentum may continue, potentially reaching $3,280 per ounce on the COMEX and Rs 94,700 per 10 grams on the MCX in the coming months," she added.
