gold prices in India experienced a decline on Thursday, with the cost per gram decreasing to 8,165.30 Indian Rupees from the previous day’s rate of 8,178.09 INR. Similarly, the price for gold per tola decreased from 95,387.63 INR to 95,238.45 INR. For those considering bulk purchases, the value for 10 grams is now set at 81,652.99 INR, and a Troy ounce is priced at 253,965.00 INR.
The fluctuation in gold prices comes amid rising trade tensions involving the United States and key trading partners. Recently implemented tariffs of 25% on many imports from Mexico and Canada, along with a hike on Chinese goods to 20%, have ratcheted up concerns over a potential trade war. In response, Canada announced retaliatory tariffs on over $100 billion worth of US products, while China announced tariffs up to 15% on US agricultural exports, escalating the international trade conflict.
Market analysts have noted that these tariffs may hinder US economic growth, potentially prompting the Federal Reserve to consider several interest rate cuts before the year’s end. This speculation intensified following a report showing that private sector job growth in the US was significantly lower than expected, with only 77,000 new jobs created in February compared to an expectation of 140,000.
Amid these economic developments, activity in the US service sector continued to grow in February, but it did not provide enough support for the US Dollar, which dropped to its lowest point in nearly a year. This decline in the dollar has made gold appear more attractive as an investment, especially during the Asian trading session. Additionally, a delay announced by the White House regarding compliance on tariffs related to the US-Mexico-Canada Agreement further heightened investor interest in riskier assets, which has suppressed aggressive bullish positioning in the gold market.
As investors await the weekly Initial Jobless Claims data from the US, all eyes remain on the forthcoming Nonfarm Payrolls report, which is anticipated to provide further insights into the labor market and economic health.
