Gold prices rise ₹540 per to ₹87,160/10 gm this week amid concerns over US tariffs

Gold prices advanced up to ₹540 per 10 grams or 0.63% this week, mainly driven by safe-haven demand amid trade war worries. After a more than 1% correction in the previous week, gold resumed its upward journey as US President Donald Trump’s flip-flops on the policy front kept investors on their toes.

Gold of 24K purity traded at ₹87,160 per 10 grams in major Indian cities on Friday, up by ₹540 over the last week. The 22K variety was quoted at ₹79,900 per 10 grams, up by ₹500 on a weekly basis.

In Delhi markets, the 24K gold was quoted at ₹87,310 per 10 grams on Friday from ₹86,770 per 10 grams last week. The 22K gold rose to ₹80,050 per 10 grams from ₹79,550 per 10 grams last week.

Gold prices retreat from week high amid Trump flip-flops

Gold started the week on a flat note and traded little changed on Monday, mainly due to confusion over the rollout of tariffs announced against Canada, Mexico and China.

The precious metal surged by ₹760 per 10 grams on Tuesday as the US confirmed the 25% tariff on Canada and Mexico and 20% on China. Gold advanced ₹600 to trade at a week-high level on Wednesday as the three US trade partners announced retaliatory measures. China imposed tariffs on US farm products.

Gold witnessed profit-taking on Thursday and Friday amid weak domestic demand, falling by ₹820 in two days due to uncertainty over trade policy, as the US put off some of the tariffs for a month for trading partners. Gold retreated to ₹87,160 per 10 grams for the 24K variety and ₹79,600 per 10 grams for the 22K variety on Friday.

Silver advances over 2% as US dollar weakens

Silver prices advanced around ₹2,100, or over 2%, to ₹99,100 per kg this week as the US dollar weakened to 103 levels. The US also softened its stance on tariffs while China also expressed intent to discuss trade-related issues, providing relief to investors. Tariff-related barriers are expected to hit the global demand for the white metal, which has industrial applications in renewable and electronics sectors.

Silver prices traded flat on Monday and Tuesday amid weak demand. The white metal spurted by ₹1,100 on Wednesday and again ₹1,000 on Thursday as the US dollar slipped to below 104 levels. The metal advanced by ₹100 on Friday to ₹99,100 per kg.

US trade policy uncertainty, weak dollar major support for precious metals

Trade policy uncertainty and concerns over wider tariff wars are the major moving factors for gold. However, some flip-flops by Trump over the tariffs policy have made investors nervous as they preferred to book profits as the metal regained week-high levels. Trump on Thursday announced an exemption to certain goods from 25% tariffs for a month after his talks with the Mexican President. Similarly, the US President put off tariffs on auto components from Canada for a month.

While Mexico offered to discuss trade issues, Canada struck a defiant tone, which led to putting off tariffs for another month. The uncertainty took a toll on investors who are booking profits at every rise, leading to trimming of gains in gold.

A weak dollar has come as a booster for both gold and silver. Concerns over the US economy have driven down the US currency.