Gold prices jumped on Thursday on rising safe-haven demand after US President Donald Trump escalated tariffs on China despite his decision to temporarily ease steep duties on several other countries. In the previous session, the international gold rate spiked 3%.
The Indian stock market and commodity market are closed on April 10 on account of Mahavir Jayanti 2025. However, commodity trading will open for the evening session on Multi Commodity Exchange (MCX) at 5 PM.
Spot gold prices rose 0.2% to $3,089.17 an ounce. Bullion scaled to an all-time peak of $3,167.57 on April 3. US gold futures rose 0.8% to $3,104.90. In the previous session, spot gold prices rallied 2.6%, while US gold futures jumped 3%.
MCX gold rate ended lower by ₹80, or 0.09%, at ₹89,724 per 10 grams on Wednesday. It hit session’s high of ₹90,853. Silver price jumped by ₹2,856, or 3.22%, to close at ₹91,600 per kg.
Gold prices have risen more than $400 in 2025 and hit a record high of $3,167.57 on April 3, owing to strong safe-haven demand and central bank buying, Reuters reported.
US-China Trade Tensions
The rally in gold prices came after Trump ramped up pressure on China. Trump said he would raise the tariff on Chinese imports to 125% from the 104% level, escalating trade tensions between the world’s two largest economies. However, Trump also announced a 90-day pause on higher tariffs on all nations.
Amid concerns that tariffs could fuel inflation and hamper economic growth, investors pulled out of equities and industrial commodities, seeking safety in gold. The yellow metal is traditionally viewed as a haven during periods of political and financial uncertainty.
Market participants are now awaiting the release of the US Consumer Price Index later today, followed by the Producer Price Index on Friday, for key insights into the Federal Reserve’s interest rate outlook.
(With inputs from Reuters)
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