Gold futures soar nearly ₹900 to trade above ₹1,02,150/10 gm on US tariff concerns and market volatility; check key details

Gold prices on Thursday, August 7, surged as much as ₹893 (0.88%) to a lifetime high of ₹1,02,155 per 10 gram in futures trade on the Multi Commodity Exchange (MCX), fueled by US tariff concerns and market volatility.

In the morning trade, the gold October futures (expiry on October 3, 2025) first hit a fresh high of ₹1,01,539 per 10 grams, rising by ₹277 (0.27%). The upward rally of the precious metal continued through the afternoon, with the gold futures reaching an all-time high of ₹1,02,155 per 10 gram from the previous close of ₹1,01,262 per 10 gram.

The gold futures for the September expiry (September 5, 2025) also hit a lifetime high of ₹1,01,519 per 10 gram on the MCX, up ₹832 (0.82%) from the previous close of ₹1,00,687 per 10 gram. The September futures are Mini Gold Futures Contracts with a contract size of 100 gram.

Globally, Comex gold futures for December delivery jumped 0.49% to $3,385.98 per ounce in New York.

At 2:30 pm on Thursday, gold October futures were trading ₹416 (0.4%) higher at ₹1,01,678 per 10 gram with a volume of 5253 lots. Gold (Mini) September futures were up by ₹381 (0.38%) at ₹1,01,068 per 10 gram.

Domestic yellow metal prices of 24K gold are at ₹1,01,840 per 10 gram, up ₹480 (0.47%) from ₹1,01,360 per 10 gram in the previous session, as per India Bullions.

Why is gold on an unending bull run?

Gold’s bull run seems to be everlasting, and its safe haven demand has been on an upward trajectory throughout this year.

In 2025, gold has jumped over 25%, as investors seek refuge in safer investments. A safe haven asset acts as a cushion in a volatile market, and investors run towards precious metals when equities and currencies tumble.

US tariffs

US President Donald Trump has doubled existing tariffs on Indian goods to 50%, triggering volatility in Indian markets and driving up gold prices. Gold has a tendency to thrive in volatile and uncertain markets, and its risk premium only gets a boost when the situation gets unstable globally.

Jewellers and gold investors had a field day when Trump initially introduced tariffs in April, and since then, tariffs have kept the gold market hot, fuelling its prices to new record highs every other day.

After the 50% tariff announcement, the Indian gem and jewellery industry is reportedly planning to shift from the US and relocate its manufacturing to low-tariff nations such as the United Arab Emirates and Mexico in order to retain access to its largest market.

Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), described the tariff increase as "doomsday" for the sector.

“We will reroute our products through other countries after studying the tariff structure of that country with the US. We will set up manufacturing units there quickly," The Economic Times quoted Bhansali as saying.

Central bank gold buying

Globally, central banks continue to buy gold, further boosting the prices of the yellow metal. In May 2025, central banks added a net 20 trillion gold to their reserves, as per the World Gold Council.

According to WGC’s Central Bank Gold Reserves Survey 2025, 43% of central bankers surveyed said that they are aiming to increase their gold reserves, and 95% of them believed that the official gold reserves would continue to increase in the next 12 months. This is because of gold’s nature as a diversifier and hedge during crisis and inflation, WGC noted.

This was reiterated even during the Official Monetary and Financial Institutions Forum (OMFIF) Global Public Investor 2025, as 32% of central banks said that they expect to increase gold holdings in the next one to two years.

Central banks around the world are set to buy 1,000 tons of gold in 2025, making this their fourth year of huge gold purchases aimed at diversifying reserves, a Reuters report said in June, citing consultancy Metals Focus.

“Gold prices are up 29% so far this year after hitting a record high of $3,500 per troy ounce in April on geopolitical tensions and economic uncertainty as U.S. President Donald Trump continues to roll out his tariff policies,” the report said.

Central banks are the third largest consumer of gold after the jewellery sector and physical investment.

Market volatility

Due to US tariffs and other geopolitical tensions, the domestic and global markets have remained volatile, fuelling gold’s bull run. When investors can’t fully trust the equity market, they prefer safer investments, including gold and other precious metals.

The Indian stock market, along with overseas markets, is fluctuating, and the situation could get more uncertain as Trump introduces more tariffs on India and other countries.

The current tariff hike is expected to affect several Indian exports, including gems and jewellery ($12 billion), textiles and clothing ($10.3 billion), shrimp ($2.24 billion), leather and footwear ($1.18 billion), chemicals ($2.34 billion) and machinery ($9 billion). This adds to the volatile sentiment in the market, further uplifting gold.

In the coming months, gold could rise further with changing global dynamics, and investors must approach the market conditions carefully.