Gold Prices Rise Amid US Trade Policy Uncertainty; India Sees Dip in Domestic Rates

Global gold prices remain firm, set for a weekly gain, as investors eye US jobs data and inflation concerns. Indian gold prices decline.

March 8, 2025: Gold Prices Rise Amid US Trade Policy Uncertainty; India Sees Dip in Domestic Rates

Gold remains a preferred safe-haven asset amid economic uncertainty, though domestic prices in India take a hit.

Global gold prices held firm on Friday, poised for a weekly gain of 1.7%, as uncertainty over US trade policies, inflation, and economic growth continued to fuel demand for the precious metal.

At 05:48 GMT, spot gold traded at $2,911.00 per ounce, unchanged from the previous session.

Meanwhile, in India, gold prices fell, with:

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• 24-carat gold dropping by ₹510 to ₹8,765.3 per gram
• 22-carat gold declining by ₹470 to ₹8,036.3 per gram

US Trade Policies & Inflation Support Gold Prices

Gold’s bullish momentum remains strong amid economic concerns, particularly after US President Donald Trump suspended a 25% tariff on Canadian and Mexican imports. This policy shift has left markets unsettled, pushing investors towards safe-haven assets like gold.

“A weaker US dollar, ongoing trade tensions, and inflation worries continue to support gold,” said Kunal Shah, head of research at Nirmal Bang Commodities.

Also Read: “Can’t Sell Anything In India”: Trump Again Slams India Over “Massive Tariffs”

US Jobs Report & Federal Reserve Policy Outlook

Investors are keenly awaiting the US non-farm payrolls report, expected to show a 160,000-job increase in February. The Federal Reserve’s stance on interest rates will also be a key driver for gold prices, with Governor Christopher Waller signaling no rate cut this month, but possible reductions later in 2025 if inflation eases.

Gold’s Performance in 2025

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So far this year, gold has surged over 10%, reflecting investor concerns over economic uncertainty and geopolitical risks. Analysts expect continued demand as markets navigate global inflation trends and interest rate decisions.