Gold Surges To Record High on MCX Amid Trump Tariff Jitters On D-Street

D-Street witnessed significant declines in trade on August 8 as the Nifty slipped over 1 per cent to close at 24,350.9 and the Sensex closed at 79,835.61, down by nearly 1 per cent. Amid the declines, the price of gold shot to a new high on the Multi Commodity Exchange (MCX)

The price of Gold October 2025 futures contract climbed 0.77 per cent to a record high of Rs 1,02,250 per 10 grams on the MCX. The surge in the price of the contracts followed uncertainty related to the imposition of US trade tariffs and a subsequent uptick in the demand for safe-haven assets. The demand for safe haven assets also led to a surge in the price of Silver September Futures which surged 1.39 per cent to Rs 1,15,876 per kilogram.

The India VIX index, which is an indicator of volatility in the market, closed 2.95 per cent higher on August 8. A surge in volatility implies uncertainty regarding how the stock market will move in upcoming trades. As uncertainty takes hold of the market during periods of stress, economic downturns, geopolitical tensions, or unexpected events, investors turn risk-averse. This aversion to risk makes them look for safe assets, which are seen as stable and can hold their value. Historically gold and silver have maintained or increased its value during such crises.

The surge seen in the contracts of the safe haven assets followed a similar uptick in the price of the US gold contract on August 8. The price of the US Gold December 2025 contract surged over 2 per cent to a day high of $3,534.10. The surge followed news regarding the imposition of tariffs on the import of 1-kilogram gold bars to the US, according to a report by the Financial Times. The report stated that 1-kilogram gold bars will now come under the ambit of the US Customs and Border Protection (CBP) and will have the classification code 7108.13.5500, which is subject to tariffs. The change in the classification means that the import of gold bars will no longer remain tariff exempt.

Apart from the surge in gold prices on the MCX, the price of physical gold also surged with the price of 10 grams of 24 karat gold trading around Rs 1,03,310. The price of 10 grams of 22 karat gold remained around Rs 94,700 and the price of 10 grams of 18 karat gold remained around Rs 77,490. On the other hand, the price of silver remained around Rs 1,17,000 per kilogram.

However, spot gold prices declined by 0.38 per cent or $12.9 to $3,403.1 per troy ounce. Spot silver prices closed around $38.55, up by 0.08 per cent. So far in 2025, spot gold prices have surged 29.01 per cent and spot silver prices have surged 32.4 per cent.