Gold prices have ruled above Rs 1 lakh/10 gms for the past 4 days
As US President Donald Trump doubled the tariff against Indian exports to 50% -- he earlier slapped 25% -- as a retaliation against continuous purchase of Russian crude, the safe-haven demand for gold zoomed.
Kolkata: Gold prices thrive in uncertainty. Whenever there is uncertainty in the air, gold prices rise. This year US President Donald Trump has been one of the most significant factors to pump up gold prices around the world and in India. Significantly, gold prices reached new heights this week in the domestic market, thanks to the two-fold tariffs announced by Washington -- 25% overall as retaliatory action and 25% specifically for buying what the US President described as "massive amounts" of Russian crude.
Data from IBJA (India Bullion and Jewellers Association) reveal that the price of gold 999 was at a kissing distance from Rs 1,01,000 per 10 gms. The price of the 995 variety too touched Rs 1,00,500 per 10 gms. These are levels that are unseen in the domestic spot market. Significantly, Thursday, August 7 is the fourth day on the trot that the prices have remained above the psychologically crucial level of Rs 1 lakh per 10 gms. Incidentally, IBJA is the apex industry association and the government uses its data as the reference point for important pricing decisions.
Gold prices this week
August 7
Gold 999: Rs 1,00,904 (opening)
Gold 995: Rs 1,00,500 (opening)
August 6
Gold 999: Rs 1,00,672 (opening), Rs 1,00,452 (closing)
Gold 995: Rs 1,00,269 (opening), Rs 1,00,050(closing)
August 5
Gold 999: Rs 1,00,397 (opening), Rs 1,00,076 (closing)
Gold 995: Rs 99,995 (opening), Rs 99,675 (closing)
August 4
Gold 999: Rs 99,759 (opening), Rs 1,00,167(closing)
Gold 995: Rs 99,360 (opening), Rs 77,766 (closing)
Heightened concerns
On August 7, the price of the yellow metal rose due to safe-haven demand following the imposition of an additional 25% of tariff on India for buying Russian crude, which Trump took as a signal of defiance of his diktat on stopping such purchases by New Delhi. His logic: New Delhi's continuous purchase of crude oil from Russia indirectly funded Moscow's aggression against Ukraine. India's retort was simple -- New Delhi needs to secure the energy needs for a nation of more than 1.4 billion people in the optimum way it can.
Worldwide, too, the northward march of prices continued advancing towards the $3400 level. According to reports, spot gold price reached $3,378.18 per ounce and US gold futures touched $3,445.60. "Trump has been dishing up fresh tariff threats which is keeping gold in the frame as a defensive play for investors," Tim Waterer, chief market analyst at KCM Trade, was quoted in the media as saying.
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