On Wednesday, gold prices held steady at their historic peak of Rs 94,150 per 10 grams in the national capital, as traders remained on edge, anticipating potential reciprocal tariffs from the United States. According to the All India Sarafa Association, gold with 99.9% purity maintained its impressive value after a significant increase of Rs 2,000 on Tuesday, representing the most considerable rise in nearly two months. Similarly, gold of 99.5% purity remained unchanged at its record high of Rs 93,700 per 10 grams.

Market Sentiment and Investor Caution

Market analysts observed that investors were exercising caution in light of US President Donald Trump’s expected announcement regarding trade tariffs aimed at countries with a trade deficit with the United States, including India. This situation has left many traders anxious about the potential impact on global trade dynamics.

Key Points:

• Gold prices remain at all-time highs.
• Anticipation surrounds potential US tariffs.
• Investor sentiment is cautious amid trade policy uncertainty.

Silver Prices Experience Decline

In contrast to gold, silver prices experienced a drop of Rs 1,000, settling at Rs 1,01,500 per kg, down from the previous closing of Rs 1,02,500 per kg. Analysts attribute this fluctuation to the prevailing uncertainty regarding global trade policies, which have been influencing precious metal prices.

Expert Insight:

Saumil Gandhi, a Senior Analyst at HDFC Securities, remarked, “The likelihood of reciprocal tariffs introducing new volatility in financial markets is high. Investors will closely assess how these tariffs affect global trade, economic stability, and geopolitical relations.” He emphasized that during periods of uncertainty, precious metals often emerge as safe-haven investments.

Global Market Overview

Turning to the international scene, spot gold saw a slight increase of 0.11%, reaching USD 3,116.86 per ounce, while Comex gold futures for June delivery remained steady at USD 3,149.30 per ounce. Additionally, silver prices in Asian markets rose by 0.52%, hitting USD 33.87 per ounce.

Market Trends to Watch:

• Investors are keenly awaiting the US private jobs report, which could offer valuable insights into the Federal Reserve’s upcoming monetary policy decisions.
• The ongoing global economic uncertainties continue to place gold in a favorable position as a hedge against market volatility.

With the landscape of trade policies shifting, investors are increasingly turning their attention to gold, reinforcing its reputation as a reliable safeguard during turbulent times.