Trump's Tariff Turmoil: Gold Prices Reach New Heights Amid Trade Tensions

The announcement of Trump's reciprocal tariffs has propelled gold prices near all-time highs, fueled by uncertainties in the global trade landscape. Analysts attribute gold's surge to its appeal as a safe-haven asset amidst economic volatility, with the jewelry export sector facing significant challenges due to elevated tariffs.

In a move that has intensified global economic tensions, President Donald Trump's announcement of reciprocal tariffs has sent gold prices soaring to unprecedented levels, nearing all-time highs of USD 3,201 per ounce. The market's reaction highlights gold's continued appeal as a safe-haven investment amidst geopolitical and economic instability.

Data suggests a dramatic 40% increase in gold prices over the past year, with a record 20% rise in 2025 alone. NS Ramaswamy from Ventura attributes the surge to heightened inflation concerns and potential ramifications on the US economy, as 'Liberation Day' tariffs are set to reshape trade dynamics.

Significant repercussions are anticipated within India's jewelry sector. Industry leaders like Ashokbhai Minawala express concerns about the impact on export markets due to unsustainable 26% tariffs, while the World Gold Council warns of potential setbacks for a sector that constitutes a substantial portion of India's exports.

Gold's escalating value reflects global investor apprehensions as further aggressive tariffs threaten to expand the trade war, according to Manav Modi of Motilal Oswal Financial Services. Colin Shah of Kama Jewelry urges the Indian government to consider lowering import duties on US goods to mitigate looming economic challenges.

With gold prices breaching the USD 3200 mark following Trump's tariff declaration, global markets stay on edge, seeking refuge in the precious metal amid growing trade uncertainties. (ANI)

(With inputs from agencies.)