Gold Price Today Hold Firm Above ₹91K Amid Trump’s Tariff Warning, US-Iran Tensions, and Dollar Weakness

Trump’s Tariff Rhetoric Stokes Uncertainty

The precious metal’s strength comes as markets brace for Trump’s anticipated tariff announcement, scheduled for April 2, 2025. The U.S. President has hinted at imposing steep reciprocal tariffs—potentially up to 25% on imports from key trading partners like Canada, Mexico, and China—raising fears of a global trade war.

Analysts suggest these policies could ignite inflationary pressures, disrupt economic growth, and drive investors toward gold. “Trump’s tariff threats are a double-edged sword—pushing inflation expectations higher while amplifying trade tensions, both of which are gold-positive,” said Anuj Gupta, Head of Commodity & Currency at HDFC Securities.

The tariff uncertainty has already rattled equity markets, with the Nifty 50 slipping 0.8% on Tuesday, further boosting gold’s appeal as a hedge. Posts on X echoed this sentiment, with users noting, “Gold’s the only winner in this tariff mess—up 18% in 2025 already!”

US-Iran Tensions Add Geopolitical Heat

Geopolitical risks also played a pivotal role in gold’s firmness. Reports of heightened U.S.-Iran friction, including U.S. military maneuvers in the Persian Gulf and Iran’s defiant rhetoric over nuclear ambitions, have kept investors on edge.

This follows a fragile ceasefire in the Israel-Hamas conflict, which briefly eased tensions but failed to quell broader Middle East instability. “The US-Iran standoff is the immediate trigger fueling gold’s safe-haven status,” said Manav Modi, Senior Analyst at Motilal Oswal Financial Services. “Any escalation could push prices toward ₹92,000 domestically and $3,200 internationally.”

Dollar Weakness Amplifies Gold’s Shine

A softer U.S. dollar provided additional tailwinds. The Bloomberg Dollar Spot Index fell 0.3% to 103.85 on Tuesday, near a four-month low, making gold more affordable for overseas buyers.

The dollar’s decline stems from mixed U.S. economic signals—robust GDP growth of 2.4% in Q4 2024 clashed with consumer confidence hitting a 12-year low, amplifying bets on a Federal Reserve rate cut in June. “A weaker dollar and expectations of looser monetary policy are classic drivers for gold,” Modi added. “We’re seeing central banks and ETF inflows reinforcing this trend.”

Domestic and Global Market Dynamics

In India, gold of 99.9% purity traded at ₹91,050 per 10 grams in Delhi, up marginally from ₹91,000 the previous day, according to the All India Sarafa Association. The MCX saw gold futures oscillate between ₹90,900 and ₹91,232 intraday, reflecting cautious optimism. Globally, gold has gained over 16% year-to-date in 2025, extending its 2024 momentum, driven by central bank purchases exceeding 1,000 tonnes annually and a record $9.4 billion ETF inflow in February.

Silver, meanwhile, showed resilience, with May futures on the MCX rising 0.5% to ₹1,00,950 per kilogram. Internationally, silver traded at $34.70 per ounce, buoyed by industrial demand and safe-haven spillovers.

What’s Next for Gold?

Experts remain cautiously bullish. Jateen Trivedi, VP of Research at LKP Securities, projected a near-term trading range of ₹90,500 to ₹92,500 on the MCX, warnng that any tariff delay or de-escalation in US-Iran tensions could trigger profit-taking. “Gold’s priced in a lot of the tariff noise already,” he noted. “A surprise softening from Trump could see it dip to ₹90,000, but the geopolitical and dollar factors suggest $3,250 internationally by mid-2025.”

Gold Rate Today (₹ per 10 grams)