Trump Tariff Impact: Gold Outperforms Bitcoin; Analysts Say Silver May Hit Rs 1,15,000 Level Soon – News18
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Trump Tariff Impact: Silver continues to trade in the range of $31.5 (Rs 93,000) and $34 (Rs 97,000), and once it breaks this, it will head higher towards $38 (Rs 1,15,000), says an analyst.
Gold prices continue its rebound above $2,900 (Rs 85,400), with the next resistance to look for $2,940 (Rs 86,300) and $2975 (Rs 87,000).
Trump Tariff Impact On Gold, Silver Prices: The tariff impositions by US President Donald Trump across countries including Mexico, Canada and China, are raising concerns around the potential trade war globally. The economic uncertainty caused by it is boosting the prices of gold and silver due to higher demand amid safe-haven buying. Gold has surged 10 per cent this year so far, outpacing Bitcoin which has declined over 3 per cent. Analysts say the silver has so far remained stable but it is expected to surge in the next few months to hit Rs 1,15,000 per kg.
Currently, gold prices stand at Rs 86,038 per 10 grams, while silver is trading at 97,070 per kg.
Renisha Chainani, head of research at Augmont, said, “Trump’s ideas, widely regarded as likely to exacerbate economic uncertainty, have helped safe-haven bullion jump more than 10 per cent this year.”
Trump Tariffs So Far
US President Donald Trump imposed 25 per cent tariffs on imports from Mexico and Canada on Tuesday, as well as a doubling of duties on Chinese goods to 20 per cent, igniting trade wars that could stifle economic growth and raise prices for Americans still reeling from years of high inflation.
In retaliation, China imposed 15% tariffs on US agricultural goods and banned trade with certain defense companies, while Canada introduced phased levies on $107 billion worth of goods, and Mexico pledged countermeasures.
Trump also vowed to impose reciprocal tariffs against several countries, including China and India, saying that move is towards making “America Rich Again”. He also said that reciprocal tariffs will kick in on 2 April.
Impact Of Trump Tariffs On Gold, Silver Prices
Kaynat Chainwala, assistant vice-president (commodity research) of Kotak Securities, said, “Comex Gold gained for the second consecutive session on Tuesday, closing above $2,925 per ounce, as the dollar tumbled to 105.5, its lowest level since December, amid escalating trade tensions between the US and its major trading partners.”
Augmont’s Renisha Chainani said gold prices continue its rebound above $2,900 (Rs 85,400), with the next resistance to look for $2,940 (Rs 86,300) and $2975 (Rs 87,000).
Silver May Hit Rs 1,15,000 In Few Months
Chainani said silver continues to trade in the range of $31.5 (Rs 93,000) and $34 (Rs 97,000), and “once it breaks this, it will head higher towards $38 (Rs 1,15,000)”.
Kunal Shah of Nirmal Bang said, “Silver is the only commodity in the last three years running in the deficit of more than 8%. So, this is the perfect storm. The supply of scrap silver, which used to be a major hurdle in the silver prices, is gradually decreasing in India and China. I am expecting silver prices to shoot up 15-20 per cent in the next 3-4 months. In precious metals, silver is my top pick.”
Several Upside Limitations
Experts said that though the bullion market is looking up amid global economic uncertainties, there are some upside limitations as well that could cap the price increase.
Kaynat Chainwala, assistant vice-president (commodity research) of Kotak Securities, said, “Today, gold is trading near $2,925, but sharp upside is limited as US Commerce Secretary Howard Lutnick suggested a possible tariff relief for Canada and Mexico. If an agreement is reached and levies are eased, it could put downward pressure on gold prices.”
