Gold rockets Rs 5,000 in two days as US-China tariff tensions rattle markets

Gold prices in India continued their sharp upward climb on Saturday, rising nearly Rs 5,000 in just two days amid escalating trade tensions between the United States and China. The surge follows US President Donald Trump’s announcement of a steep 145 percent tariff on Chinese imports, a move that triggered a fresh wave of investor anxiety and boosted safe-haven demand for the yellow metal.

On Friday, gold prices jumped by over Rs 2,000 across major cities in India, after a Rs 2,940 spike on Thursday. The cumulative rise of nearly Rs 5,000 marks one of the steepest two-day gains in recent months.

In Mumbai, 22-carat gold was priced at Rs 87,700 per 10 grams on Saturday morning, while 24-carat gold stood at Rs 95,670 per 10 grams. The same rates were recorded in Chennai, Bengaluru, and Hyderabad, reflecting a nationwide surge in bullion prices. Silver also saw a substantial rally, with prices increasing by Rs 2,900 to reach Rs 1,00,000 per kilogram in Mumbai, according to goodreturns.in.

According to traders, the primary driver behind the spike was heightened global uncertainty following the tariff hike. “The sudden escalation in trade tensions has reignited fears of economic disruption. Investors are rushing to gold as a safe asset,” said a bullion dealer in Mumbai.

The rise in gold prices comes after a brief dip earlier in the week, which traders attributed to profit booking. However, the sharp escalation in the US-China trade war has reversed that trend. Although the US has offered a 90-day pause on tariffs for several other countries, the hike against China has intensified volatility in global markets.

President Trump, in a statement on Wednesday, confirmed the tariff increase to 145 percent, part of a broader pattern of tit-for-tat tariffs exchanged by the world’s two largest economies over the past week. The move has had ripple effects across commodities and equity markets, driving demand for gold and silver globally.

In India, gold holds deep cultural and financial value, especially during festivals and weddings. Known for its unmatched purity, 24-carat gold remains the preferred choice for investors seeking premium returns. Meanwhile, 22-carat gold, valued for its durability and practicality, continues to dominate the jewellery market.

Daily gold prices in India are influenced by a complex mix of international gold rates, currency exchange fluctuations, import duties, and local taxes. The surge over the past two days reflects the market's sensitivity to global political and economic developments.

As the trade conflict between the US and China intensifies, bullion prices are likely to remain volatile. Analysts advise traders and investors to monitor global cues closely, as further escalation could drive prices even higher in the coming days.