Winning Bizness Desk
Mumbai.Gold prices reached a three-month high in the international market on Wednesday, driven by uncertainty surrounding U.S. President Donald Trump’s policies and a weakening dollar. According to market data, spot gold rose by 0.6% to $2,759.83 per ounce, marking its highest level since November 1. In October, gold had touched a record high of $2,790.15. U.S. gold futures also increased by 0.4%, reaching $2,771.10, while silver prices edged up by 0.1% to $30.89 per ounce.
Dollar Drops to Two-Week Low
The sharp rise in gold prices is largely attributed to a decline in the dollar index, which fell to a two-week low. Saxo Bank commodity strategist Ole Hansen explained to Reuters that uncertainty fueled by Trump’s announcements, including proposed tariffs, has positively impacted gold and silver prices. Investors are also assessing the potential effects of Trump’s policies on inflation and monetary policy. Hansen noted that the trajectory of gold and silver prices in the coming days will heavily depend on news from Washington.
Tariff Threats Add to Market Volatility
Trump has vowed to impose tariffs on the European Union and hinted at a 10% tariff on Chinese imports due to fentanyl trafficking into the U.S. via Mexico and Canada. If Trump’s policies keep inflation elevated and compel the Federal Reserve to maintain higher interest rates for an extended period, measures to curb inflation could eventually lead to a dip in gold prices.
Gold Prices in India
In India’s futures market, gold traded higher on the Multi Commodity Exchange (MCX). At 5:20 PM, gold prices were up by ₹320, trading at ₹79,544 per 10 grams. During the trading session, prices reached a daily high of ₹79,577, after opening at ₹79,328 in the morning. Meanwhile, silver prices surged by ₹188, reaching ₹80,272 per kilogram, with session highs of ₹80,395.
Uncertain Outlook
The rise in gold and silver prices reflects market concerns over inflationary pressures and the impact of Trump’s trade policies. Analysts believe the trajectory of gold prices will be influenced by developments from Washington and broader market conditions.
Gold’s current performance underscores its status as a safe-haven asset amid global economic uncertainty. While the dollar’s decline has temporarily boosted gold prices, the long-term outlook remains tied to U.S. economic policy, inflation trends, and Federal Reserve decisions.
