Gold rate today: Yellow metal reclaims ₹89,000-mark as tariff war fears boost safe-haven demand

Domestic gold prices on Tuesday increased by ₹1,100 in the national capital to once again hit the ₹89,000-mark, according to the All India Sarafa Association. The growth was on the back of increased buying by jewelers and investors and strong global trends.

The precious metal of 99.9% purity jumped ₹1,100 to ₹89,000 per 10 gm from the last close of ₹87,900 per 10 gm.

While the equity markets are falling consistently, gold has been on its own ride, climbing to all-time high. Stock markets, both in India and abroad, have been experiencing major corrections amid trade war fears due to US tariffs. Market volatility and fluctuating global dynamics lead investors to safer options like gold.

The yellow metal is a safe-haven and offers a stellar risk premium to the investors. The metal recently hit its all-time high of ₹89,450 per 10 gm on Thursday, February 20.

US President Donald Trump on Monday said that the US will impose 25% tariffs on goods imported from Mexico and Canada starting Tuesday, sending equity markets into turmoil. Equity benchmark indices in India fell for the 10th straight session today.

Bullion prices surged after US President Trump confirmed tariffs on Canada, Mexico and China from Tuesday, a PTI report said citing traders. China and Canada also announced retaliatory measures against the US, leading to an escalation in trade tensions across North America, the report added.

Gold of 99.5% purity today, March 4, advanced by ₹1,100 to ₹88,600/10 gm, up from its previous close of ₹87,500 per 10 gm.

Silver prices increased by ₹1,500 to ₹98,000 per kg driven by industrial demand and the gold's rally. The white metal closed at ₹96,500 per kg on Monday.

On the Multi Commodity Exchange (MCX), gold contracts for April delivery climbed by ₹806 to ₹86,190 per 10 gm. Additionally, silver for May delivery rose by ₹472 to ₹96,482 per kg.

"Gold remained positive as COMEX gold surged over 1%, supporting MCX gold, which gained but slightly underperformed due to minor rupee appreciation. The rally was driven by fresh tariff retaliations, with Canada and China imposing tariffs on the US, fuelling safe-haven demand," Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities told PTI.

Comex gold futures for April contracts, in the overseas markets, jumped by $32.70 or 1.13% to $2,933.80 per ounce. Meanwhile, spot gold prices grew by nearly 1% to $2,921.42 per ounce.