Gold prices jump to record high amid Trump tariff fears

Gold futures on the Multi Commodity Exchange (MCX) jumped to a high of ₹85,469 per 10 grams.

Gold prices surged to a record high in the domestic futures market on Monday due to uncertainty regarding US President Donald Trump's tariffs.

Sovereign Gold Bond is issued by the Reserve Bank of India (RBI) on the government's behalf. (Representative Image)

Gold futures on the Multi Commodity Exchange (MCX) jumped to a high of ₹85,469 per 10 grams. At 10:55 am on Monday, it was at ₹85,322.

Meanwhile, gold prices internationally rose to $2,878.75 per ounce, according to Bloomberg data. This was a rise of $17.68 or 0.62%.

This comes as US President Donald Trump decided to impose 25% tariffs on Monday on all steel and aluminium imports, according to a Reuters report.

He is also planning to announce reciprocal tariffs on many countries by Monday or Tuesday next week, according to the report. This further sparks concerns of a potential global trade war.

The rupee's weakness was also one of the factors which boosted the price of gold. The rupee fell by 49 paise to reach an all-time low of 87.92 against the US dollar.

“President Trump has also announced his plans to impose tariffs on several other countries next week. Rising economic uncertainty is boosting the appeal of gold,” a Mint report quoted Sugandha Sachdeva, the founder of SS WealthStreet as saying.

“Concerns over President Trump's comments regarding plans for the Gaza Strip have raised worries about geopolitical risks in the Middle East region, further driving demand for gold,” Sachdeva added.