Gold at all-time high as markets weigh Trump’s tariff escalation against India

Amid U.S. President Donald Trump remaining steadfast on his tariff policy, gold rose to an all-time high of ₹1,03,830 per 10 grams in Ahmedabad on Thursday, August 7, 2025. On the Multi Commodity Exchange (MCX), gold futures settled at ₹1,00,687 per 10 grams, while silver was around ₹1,13,655 per kg.

In global markets, gold was trading at $3,380 an ounce at 14:20 IST, while silver was at $38.16. 

Gold and silver are seen inching towards $3,400 and $39, respectively, over the prospects of a dovish monetary policy by the Federal Reserve and fresh fears of U.S. tariffs. Earlier in the day, during his Oval Office meeting with Apple CEO Tim Cook, Trump said that his government would impose a 100% tariff on foreign computer chips and semiconductors, except for U.S.-based manufacturers. This comes after the U.S. increased levies on some Brazilian items to 50%, in addition to slapping an additional 25% tariffs on Indian imports. Effectively, Trump raised tariffs on Indian imports to 50%.

"Expectations of a rate cut (by the Fed) in September, with a second probable in December, have been strengthened by unsatisfactory U.S. economic statistics and indications of a cooling labour market,” Renisha Chainani, head–research at Augmont.

Aksha Kamboj, vice president, India Bullion and Jewellers Association, and executive chairperson, Aspect Global Ventures, says gold prices have been remaining stable after a slight dip overnight as markets continue to assess the implications of the U.S.’s latest tariff escalation against India. “The recent upward momentum in bullion, fuelled by growing expectations of an upcoming interest rate cut by the U.S. Federal Reserve, is expected to persist,” Kamboj says.

Other contributing factors also include renewed weakness in the dollar, ongoing central bank purchases, festive season demand in domestic markets, and continued trade-related uncertainties. Looking ahead, U.S. inflation data due next week will likely serve as a key catalyst for short-term price movements, said Kamboj.

Meanwhile, before the end of the week, Trump is anticipated to name a replacement for departing Fed Governor Adriana Kugler. Additionally, he said that four candidates are being considered to succeed Fed Chair Jerome Powell, renewing concerns over the central bank’s independence.