Gold Prices Surge Following US Tariff Decision

Gold prices have reached unprecedented levels, driven by the United States’ recent decision to impose tariffs on gold bars. This move has led to a significant increase in international gold prices, which is also being felt in the Indian market. The tariffs, which affect 1 kg and 100-ounce gold bars, have resulted in higher import duties, impacting global trade dynamics.

Impact on Global Trade and Market Reactions

The decision by US Customs to reclassify these gold bars under a tariff category with higher duties is expected to have far-reaching effects. Countries like Switzerland, known for their gold refining and export activities, are likely to experience disruptions. The futures-spot spread has widened significantly, exceeding $100, following reports from the Financial Times about the tariff imposition.

Silver Prices Also on the Rise

In addition to gold, silver prices have seen a notable increase, now trading above Rs 1.15 lakh per kilogram. This trend reflects a broader shift in investor sentiment towards precious metals as safe-haven assets amid economic uncertainties.

Gold and Silver Prices Across Major Indian Cities

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Delhi:

Gold at Rs 1,03,420 per 10g; Silver at Rs 1,15,000 per kg
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Mumbai:

Gold at Rs 1,00,942 per 10g; Silver at Rs 1,14,732 per kg
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Kolkata:

Gold at Rs 1,01,910 per 10g; Silver at Rs 1,14,910 per kg
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Bengaluru:

Gold at Rs 1,02,120 per 10g; Silver at Rs 1,15,150 per kg

Factors Driving the Gold Price Increase

Several factors contribute to the rising gold prices: – The imposition of US tariffs on gold bars
– A weakening US dollar
– Anticipation of a US Federal Reserve interest rate cut
– Increased global demand amid economic uncertainty Gold continues to be viewed as a reliable safe-haven asset during volatile economic conditions.

Long-Term Performance of Gold

Over the past two decades, gold has delivered impressive returns of over 1,200%. From approximately Rs 7,638 in 2005 to over Rs 1,02,000 in 2025, gold has proven to be one of the best-performing asset classes this year alone with a gain of around 31%.