Gold prices rose sharply on Thursday amid heightened safe-haven demand after US President Donald Trump announced a 25% additional tariff on Indian imports, further escalating trade tensions between the two nations.

On the Multi Commodity Exchange (MCX), gold climbed to Rs 1,14,400 per 10 grams, (all-time high) gaining Rs 237 or 0.23%, while silver futures edged up by Rs 808 or 0.71% to settle at Rs 1,14,500 per kilogram.

In the international market, spot gold rose by 0.3% to $3,378.18 per ounce, and US gold futures jumped 0.4% to $3,445.60. Analysts attributed the uptick to renewed investor interest in safe-haven assets following Trump’s aggressive trade stance.

“Trump has been dishing up fresh tariff threats which is keeping gold in the frame as a defensive play for investors,” said Tim Waterer, Chief Market Analyst at KCM Trade.

The US President’s latest move involves slapping a 25% tariff on Indian goods, citing New Delhi’s continued oil trade with Russia. These tariffs will be effective 21 days after August 7 and could push duties on some Indian exports to as high as 50%—one of the steepest for any US trading partner.

Trump also announced a 100% tariff on semiconductor imports, though US.-based or committed manufacturers will be exempt.

Adding further support to gold, the US dollar index slipped to a more than one-week low following weaker-than-expected U.S. jobs data. The probability of a rate cut by the Federal Reserve in September is now pegged at 95%, according to the CME FedWatch Tool.

Gold typically benefits from lower interest rates as it reduces the opportunity cost of holding non-yielding assets. With political and economic uncertainty on the rise, the metal is nearing the key psychological level of $3,400 per ounce, with potential to test resistance at $3,454–3,509 in the coming sessions.

Spot silver also gained 0.5% to $38.04 per ounce, while platinum slipped 0.4% to $1,328.77, and palladium advanced 1.3% to $1,146.80.

Domestic market outlook

According to Manoj Jain, Director and Head of Commodity & Currency Research at Prithvi Finmart:

“Gold and silver prices remained volatile amid US tariff uncertainty and weakness in the dollar index. Safe-haven buying is likely to support prices further.”

Gold October futures on MCX settled at Rs 1,01,262 per 10 grams, down 0.07%

Silver September futures settled at Rs 1,13,655 per kilogram, up 0.13%

Jain suggests holding long positions in silver with a buying range of Rs 1,13,000–1,12,500, a stop loss at Rs 1,11,800, and a target of Rs 1,14,200–1,15,500.

Currency market reaction

The dollar index ended at 98.015, down 0.54%, pressured by concerns over escalating tariffs. The USD-INR 26 August futures also declined slightly by 0.05% to close at 87.8300.

While the Reserve Bank of India kept rates unchanged, weakness in domestic equities and rising trade tensions are expected to keep the rupee volatile, with a likely range of 86.4000–88.5000 this week.

Summary:

• Gold up 0.23% on MCX to Rs 1,14,494 amid safe-haven demand
• Silver rises 0.71% to Rs 1,14,500 per kg
• Trump’s 25% India tariff escalates trade tensions
• Spot gold nearing $3,400/oz, potential upside remains
• Fed rate cut hopes further support gold prices
• Volatile dollar and rupee add to market uncertainty

City-wise Gold Prices (per gram on August 7 , 2025):

Gold Price in Mumbai:
In Mumbai, the price of 24-karat gold stood at Rs 10,255 per gram, while 22-karat gold was priced at Rs 9,400 per gram.

Gold Price in Delhi:
The national capital recorded 24K gold at Rs 10,255 per gram, with 22K gold available at Rs 9,415 per gram.

Gold Price in Chennai:
Gold rates in Chennai were slightly lower, with 24K gold at Rs 9,933 per gram and 22K gold at Rs 9,400 per gram.

Gold Price in Kolkata:
In Kolkata, 24-karat gold was priced at Rs 10,255 per gram, and 22-karat gold was selling at Rs 9,400 per gram.

Gold Price in Bengaluru:
Bengaluru saw 24K gold trading at Rs 10,255 per gram, while 22K gold was available at Rs 9,400 per gram.

Gold Price in Pune:
Pune saw 24K gold trading at Rs 10,255 per gram, while 22K gold was available at 9,400 per gram.