Gold Rises Over Tariff-Related Uncertainty – All You Need to Know

The price of gold and silver surged in the domestic futures market this morning following a 0.5% decline in the dollar index.

MCX Gold October 3 contracts traded up 0.34% at ₹1,00,090 per 10 grams. MCX Silver September 5 contracts surged by 0.47% at ₹1,10,775 per kg at 9:15 am.

The yellow metal became cheaper in overseas currencies after the dollar index slipped by over 0.50% to 98.60.

Notably, the rally in gold can be attributed to tariff-related uncertainties. Last week, US President Donald Trump announced tariffs on various countries, even though negotiations continue.

The US job market is set to ease in the coming days, raising expectations of a rate cut by the US Fed in September.

As per Reuters, US nonfarm payrolls soared by 73,000 jobs in July after increasing by a downwardly revised 14,000 in June. Economists expected the payrolls to increase by 1,10,000 jobs after rising by a previously reported 1,47,000 in June.

“Gold prices climbed following weaker-than-expected US jobs data and downward revisions to figures from the previous two months, which triggered a sell-off on Wall Street and renewed demand for safe-haven assets. The disappointing employment report has also raised the likelihood of the Federal Reserve cutting interest rates in September, a move that typically supports gold as it doesn’t yield interest,” Aksha Kamboj, Vice President of India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures, observed.

“This week, market attention is likely to remain focused on developments related to tariffs and the Federal Reserve. Additionally, investors will be monitoring any signs of rising tensions between the U.S. and Russia, with President Donald Trump's August 8 deadline to end the war looming,” said Kamboj.