Gold Surges as Trade Tensions Stoke Safe-Haven Demand

Gold prices rose by Rs 200 to Rs 99,400 per 10 grams in the national capital, propelled by fresh buying due to economic tensions from the US-China trade standoff. Speculation over potential tariffs and fluctuating investor sentiment drove increased demand for the precious metal, reinforcing its status as a safe-haven asset.

Gold prices surged by Rs 200 to Rs 99,400 per 10 grams in the national capital on Thursday, driven by fresh buying from stockists and jewellers amid the backdrop of a weaker dollar, as reported by the All India Sarafa Association.

The rise comes following a significant correction on Wednesday when 99.9 per cent pure gold dropped Rs 2,400, retreating from the Rs 1 lakh-mark to Rs 99,200 per 10 grams. On the flip side, gold of 99.5 per cent purity also increased, climbing Rs 200 to Rs 98,900 per 10 grams.

Comments from US Treasury Secretary Scott Bessent hinting at prolonged trade tensions between the US and China, alongside hints from President Trump regarding potential new tariffs, have contributed to reviving demand for gold as a safe-haven asset. In futures trading, gold contracts for June delivery jumped by Rs 1,046 on the Multi Commodity Exchange, with expectations of continued volatility in the bullion market.

(With inputs from agencies.)