Gold rises as investors seek safety amid fresh US-India trade tensions

WASHINGTON: Gold prices climbed on Thursday as growing trade tensions between the US and India pushed investors towards safer assets.

The uptick followed US President Donald Trump’s decision to impose an extra 25 percent tariff on Indian imports. The move, which comes in response to India’s continued purchase of Russian oil, has raised fears of a deeper trade rift between the two countries.

As of 0247 GMT, spot gold was trading at $3,380.76 per ounce, up 0.4 percent. US gold futures also gained 0.3 percent to reach $3,443.30.

“Trump’s new tariff threats are keeping gold in focus as a defensive option for investors,” said Tim Waterer, chief market analyst at KCM Trade. “Gold is inching closer to the key $3,400 mark, with risk assets feeling the pressure from the constant policy shifts.”

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The fresh tariffs are set to take effect 21 days after August 7. Some Indian exports may face duties as high as 50 percent, putting them among the most heavily taxed items among US trading partners.

The rising gold prices also received support from a weaker dollar. The dollar index hovered near a one-week low after last week’s disappointing US jobs data boosted hopes of an interest rate cut in September. A softer dollar tends to make gold more attractive for foreign buyers.

Markets are now pricing in a 94 percent chance of a 25-basis point rate cut next month, according to CME Group’s FedWatch Tool.

Minneapolis Fed President Neel Kashkari said the central bank may soon need to cut rates to support a slowing US economy, even though it’s uncertain whether the tariffs will drive inflation higher.

Gold often benefits during times of economic or political uncertainty and generally performs well when interest rates are low.

In other precious metals, spot silver rose 0.3 percent to $37.98 per ounce. Platinum slipped 0.7 percent to $1,324.26, while palladium dropped 0.8 percent to $1,141.56.

Gold price rises in Pakistan despite global dip

Gold prices in Pakistan saw an upward shift on Wednesday, snapping a recent losing streak even as global markets showed a slight decline.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold rose by Rs1,300, reaching Rs359,300 per tola. Meanwhile, the price of 10 grammes climbed by Rs1,114 to Rs308,041.

This local increase came despite a minor drop in international gold rates, which remain under pressure amid ongoing economic uncertainty and currency fluctuations around the world.

Traders say the rise in domestic prices reflects a mix of global market sentiment and local demand dynamics, which often move independently of international trends.

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