Gold Prices Surge ₹550 Amid Fresh Buying, Global Uncertainty; Silver Holds Steady

New Delhi, July 8: Gold prices witnessed a sharp rise of ₹550 on Tuesday, closing at ₹99,120 per 10 grams in the national capital, driven by renewed buying interest and growing global economic uncertainty. According to the All India Sarafa Association, the price of gold of 99.9% purity had stood at ₹98,570 on Monday.

Meanwhile, gold of 99.5% purity also registered a gain of ₹500, settling at ₹98,600 per 10 grams (inclusive of all taxes).

On the other hand, silver prices remained unchanged for the third consecutive session, holding steady at ₹1,04,800 per kilogram (inclusive of all taxes).

The surge in gold prices comes amid heightened global concerns, particularly after former US President Donald Trump announced plans to impose 25% tariffs on imports from Japan and South Korea, effective August 1. The move has reignited fears of a renewed trade war, boosting the demand for gold as a safe-haven asset.

"This decision reflects President Trump's wider initiative to reform US trade policies, which have consistently created uncertainty in the markets. This uncertainty acts as a tailwind for the safe-haven asset gold," said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.

In global markets, however, spot gold saw a dip, trading at USD 3,325.09 per ounce—down by USD 11.42 or 0.34%—as investors took profits after recent gains.

Market participants are now closely watching upcoming US trade developments, minutes from the latest Federal Reserve meeting, and fresh inflation data for further cues.

"Gold continues to be a fundamental hedge asset. Market players are juggling weakening US economic data, increased geopolitical tensions, and ongoing inflation in developed economies," said Tejas Shigrekar, Senior Technical Analyst – Commodities and Currencies at Angel One.

According to analysts, with central banks, especially the US Fed, adopting a cautious, data-dependent approach post-rate hikes, and treasury inflows stabilizing, gold continues to hold firm. A weakening dollar since June has further enhanced gold’s appeal globally.

Chintan Mehta, CEO of Abans Financial Services, highlighted that long-term gold demand remains supported by sustained central bank buying—especially from emerging economies like China and India—as well as strong physical demand in jewellery markets.

With investor sentiment tilted towards safe assets and ETF inflows resuming, analysts expect gold to remain buoyant in the short to medium term, barring any major policy surprises.