Gold Prices Climb as Trump’s Tariff Moves Stir Global Market Fears — What’s Next for Investors?

Gold prices inched higher on Thursday morning (August 7) as global markets reacted to new US tariff actions, heightening investor interest in safe-haven assets like gold and silver.

By 9:10 AM, MCX Gold October futures were up by 0.16%, trading at ₹1,01,423 per 10 grams, while MCX Silver September contracts advanced 0.47% to ₹1,14,187 per kg.

What’s Driving the Surge in Gold?

The fresh rally in gold comes amid rising unease over President Donald Trump’s aggressive trade stance. The US has slapped an additional 25% duty on Indian imports, increasing total tariffs to 50%, with enforcement set to begin 21 days from now.

Trump also hinted at the possibility of “secondary sanctions”, a vague term that has stirred speculation about further penalties that could extend beyond India — potentially targeting China or other major trade partners.

“Gold is benefitting from safe-haven flows,” said Manoj Kumar Jain, Chief Strategist at Prithvifinmart Commodity Research. “It’s currently testing a key resistance zone near $3,454 per troy ounce. If this level is breached on a closing basis, we may see an upward move towards $3,480 or even $3,509.”

As trade tensions escalate, investors often flock to precious metals, which are traditionally seen as a shield against economic uncertainty.

How Should You Position Your Portfolio?

Analysts expect continued volatility in the gold and silver markets in the short term, especially with no clarity on how far the US will go with its tariff threats.

For traders and investors, technical levels remain key. Jain advises maintaining a bullish stance on silver and closely watching resistance breakouts in gold.

Suggested Trade Setup (Silver):

• Entry Zone: ₹1,12,500–₹1,13,000
• Stop Loss: ₹1,11,800
• Target Range: ₹1,14,200–₹1,15,500

Technical Outlook for Gold & Silver

Gold (International Market)

• Support: $3,389–$3,409
• Resistance: $3,454–$3,480

Silver (International Market)

• Support: $37.30–$37.64
• Resistance: $38.10–$38.50

MCX Gold (India)

• Support: ₹1,00,475–₹1,00,850
• Resistance: ₹1,01,555–₹1,02,220

MCX Silver (India)

• Support: ₹1,12,200–₹1,13,000
• Resistance: ₹1,14,400–₹1,15,200

Meanwhile, Motilal Oswal Financial Services provided its own key levels:

• MCX Gold: Support at ₹1,00,700–₹1,01,000 | Resistance at ₹1,01,700–₹1,02,100
• MCX Silver: Support at ₹1,13,300 | Resistance at ₹1,14,800

Final Take

The recent climb in gold and silver prices is a clear signal of investor caution as Trump’s tariff tactics bring fresh risks to global trade. Whether you’re a short-term trader or a long-term investor, it’s crucial to stay informed and adjust your strategies based on evolving geopolitical trends and technical price movements.

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