Gold at new high of Rs 85,370/10g as US-China trade war unravels

Monday’s rally was in response to the US president Donald Trump announcing 25% punitive import duty on Mexican and Canadian goods and a 10% additional duty on Chinese goods entering the US soil.
Gold hit a new high on the bullion market on agressive buying by stockists. (File photo: EPS)
Gold hit a new high on the bullion market on agressive buying by stockists. (File photo: EPS)
Updated on
2 min read

MUMBAI: As the global trade war intensified after China clamped a 15% counter-tariffs on American goods entering its shores, the safe haven lure of the yellow metal on Tuesday hit a new all-time high of Rs 85,370/10 g, up Rs 1,370 from the Monday’s close when for the first time the metal had crossed the Rs 84,000-mark.

Monday’s rally was in response to the US president Donald Trump announcing 25% punitive import duty on Mexican and Canadian goods and a 10% additional duty on Chinese goods entering the US soil.

While Mexico and Canada, the second and third largest trading partners of the US, late Monday reached an agreement to resolve major US concerns, leading to a one-month halt to the new tariffs which cooled the markets, China later in the day Tuesday refused to talk and instead imposed a 15% additional duty on American goods, leading to a further spike in prices.

In international markets, gold prices hit an all-time high of $2,830 on Monday after the tariff war began. The upward trend continued today, and at 20:00 hrs, gold was quoted at $2,859.20 per ounce on the Chicago Mercantile Exchange.

Traders said gold prices will go up further as the lingering US tariff threats and US inflation concerns boosted its safe-haven demand.

Given the way trade war is intensifying, gold crossing the $3000/ounce or Rs 1,00,000-mark looks closer than longer , said a trader.

Bullion is traditionally considered a hedge against both inflation and geopolitical uncertainty, but higher rates reduce the non-yielding asset’s appeal.

In the domestic market, the gold has jumped over 3% in the past one week alone with consecutive gains fueled by market anticipation surrounding the budget, while the rise has been over 6% in January alone, after a 24% rally in 2024.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com