The uptick follows US President Donald Trump’s announcement of a 35% tariff on Canadian imports starting August 1. Trump also signalled blanket tariffs of 15–20% on most other trade partners, escalating concerns about global supply chains.
However, gains remained capped as the US dollar strengthened. The dollar index is on track for its best weekly performance since late February, making gold costlier for overseas buyers.
“Despite the renewed tariff war, gold hasn’t surged like before because investors are used to Trump’s policy moves,” said Tim Waterer, Chief Market Analyst at KCM Trade.Weekly US jobless claims fell to a seven-week low, hinting at steady employment. Strong labour data could delay fresh rate cuts by the Federal Reserve, which would normally weigh on gold’s appeal.
“Looking ahead, gold’s next support is at $3,315 per ounce while resistance is seen at $3,355–$3,370 per ounce,” Rahul Kalantri, VP Commodities, Mehta Equities noted. In rupee terms, gold has support at ₹96,390–₹96,080 per 10 grams and resistance at ₹97,110–₹97,380 per 10 grams.
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said, “Despite global headwinds, domestic demand remains resilient. With international spot prices consolidating and the rupee staying stable, any further downside in local prices now seems limited. Bullish sentiment also probably reflects what may be in store from Trump’s tariff plan during the weekend. We expect gold to trade within a narrow band, with an upward bias if safe-haven buying or fresh global cues emerge.”
She added that retail investors should watch U.S. bond yields and currency moves closely, as minor changes can push Indian gold premiums up by ₹100–₹200 per 10 grams.
-With Reuters inputs
