The price of gold has shot up overnight, with a sharp increase of ₹110 per gram and ₹880 per sovereign (8 grams). This sudden spike has come as a disappointment for wedding shoppers and regular buyers. In just three days, gold prices have surged by ₹1,680 per sovereign. If you’re looking to buy one sovereign of gold jewellery now, you will have to shell out at least ₹71,500, making charges and taxes included.
So, what’s causing this rapid climb? Many believe it’s the uncertainty surrounding US President Donald Trump’s tariff policies. This “Trump fear” seems to be shaking up the gold market in a few keyways.
Trump’s trade war and tariff decisions have been unsettling global markets. Investors, worried about economic instability, are shifting their money into gold—widely seen as a safe bet during uncertain times. Stock markets have taken a hit too, with the US market dropping more than 1% recently. That fall in stocks has only pushed more investors towards gold, increasing demand and pushing up prices.
There’s growing speculation that Trump might impose tariffs on gold imports. Nothing official has been announced, but the market isn’t ruling it out. Most of the gold that enters the US comes from Canada, and with tensions already running high between the two countries, traders are watching closely to see what happens next.
Major banks and financial institutions aren’t waiting around—they’ve been shifting gold reserves from London to New York, fearing possible tariffs or other restrictions. Since Trump took office, over 500 tonnes of gold have reportedly moved across the Atlantic, including more than 100 tonnes from the Bank of England alone. Some large financial institutions have had to transfer gold to cover losses from trading in the New York COMEX market.
Historically, such large-scale movements of gold across the Atlantic have only happened during major global crises, like the World Wars. With market uncertainty still looming, analysts believe gold prices could rise even further. Demand from Asia remains strong, and central banks continue to add to their reserves. Where prices go from here is anyone’s guess, but for now, the upward trend shows no signs of slowing down.
