Gold Rate Today: Gold prices scaled to fresh record highs on Friday, March 28 as US President Donald Trump’s new auto tariffs fuelled worries of escalating trade wars, prompting investors to seek refuge in the safe-haven metal. Trump, on March 26, announced a 25 per cent tariff on imported vehicles, starting next week. Gold, traditionally seen as a hedge against economic and political instability, thrives in such a volatile environment.
In the international market, Comex Gold April futures rose 0.69 per cent to hit a record high of $3,112.2 an ounce, as of 2:30 PM. In the domestic market, MCX Gold April futures surged to an intraday high of Rs 89,060 per 10 grams, just shy of Rs 736 from a record high. It had touched a record high of Rs 89,796 per 10 grams on March 20.
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Concerns about escalating tensions with major trading partners grew, particularly after Trump suggested that additional tariffs could be imposed on the European Union and Canada if they collaborated to "do economic harm" to the US. This statement heightened fears of further disruptions, even before his reciprocal tariffs are set to take effect on April 2, according to Chainwala.
Jateen Trivedi, VP Research Analyst at LKP Securities, said that expectations of lower US GDP data and the expected tariffs from the US on April 2, 2025, created uncertainty in the market. He also mentioned that new threats from the US towards the Eurozone, over potential support for Canada, have heightened market risks, further driving up demand for safe investments like gold.
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Rising Tariff Fears Rattle Markets
India’s benchmark indices traded in the red in today’s session as Trump tariffs unnerve market participants. Sensex traded lower by some 150 odd points below the 77,500 mark. Likewise, Nifty 50 also slipped some 60 odd points to trade slightly above the 23,500 level.
In other Asian markets, Hong Kong’s Hang Seng traded lower by 0.65 per cent, China’s SSE Composite index slipped 0.67 per cent, and South Korea’s KOSPI witnessed an even greater fall, tumbling 1.89 per cent.
In Europe, France's CAC 40 traded 0.4 per cent in the red, United Kingdom's FTSE 100 slipped 0.15 per cent, and Germany's DAX skidded 0.66 per cent.
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In the US, the Dow Jones fell 0.37 per cent on March 27, the tech-heavy Nasdaq index corrected 0.53 per cent, and S&P 500 index ended lower by 0.33 per cent.
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