Gold prices climbed to their highest level in three weeks on Monday (July 14), as renewed trade tensions boosted safe-haven buying. Spot gold was up 0.2% at $3,361.19 per ounce in early trade, after touching its strongest since June 23.
US gold futures rose 0.4% to $3,376 an ounce.
In India, gold traded
at ₹99,880 per 10 grams for 24 karat purity, ₹91,550 for 22 karat, and ₹74,910 for 18 karat gold, according to Goodreturns data.
Fresh concerns over global trade pushed investors back to gold. Over the weekend, US President Donald Trump threatened to impose a 30% tariff on imports from the European Union and Mexico starting August 1. The threat disrupted markets already on edge from stalled negotiations.
“We are seeing safe-haven demand coming back due to this uncertainty on US tariffs,” said Kelvin Wong, Senior Market Analyst at OANDA. “If gold manages a daily close above $3,360 an ounce, prices could push towards $3,435 an ounce.”
Rahul Kalantri, VP Commodities at Mehta Equities, said the fresh tariff shock has unsettled equity markets and lifted precious metals. “Gold and silver could extend gains if the hawkish trade stance continues,” he noted.
Colin Shah, MD, Kama Jewelry, pointed out that domestic gold hovered in the ₹97,000–₹99,000 range last week, pressured by a stronger dollar. “This trend may hold for now, but domestic demand could pick up with India’s festive season around the corner,” Shah said.
Aksha Kamboj, Vice President, India Bullion and Jewellers Association, agreed the metal is finding support from global risk worries.
“While there’s room for negotiation on tariffs, the potential for escalation is keeping investors cautious. The dollar’s strength, though, might cap gold’s upside in the near term,” she added.
Holdings in SPDR Gold Trust, the world’s largest gold-backed ETF, dipped 0.12% to 947.64 metric tons on Friday (July 11). Speculators also trimmed net long positions by 1,855 contracts last week, data showed.
Traders are now watching for US inflation numbers due Tuesday (July 15). Any sign of stubborn inflation could shape the Federal Reserve’s next move. Markets are pricing in around 50 basis points of rate cuts by year-end.
Analysts expect gold to stay range-bound near $3,300–$3,400 an ounce in the short term, with domestic rates likely to hover around ₹98,500–₹99,500 per 10 grams.
–With Reuters inputs