Gold prices in India witnessed a massive fall on Monday due to a sharp tariff imposed by Donald Trump on economies like Canada, Mexico and China. The three countries have announced to retaliate against Trump’s tariff plans. This led to a surge in the dollar index, which eventually dampened the sentiment in haven assets like bullion and silver. Base metals across the globe were under pressure. 24K gold price in 10 grams slipped to hold below Rs 84,100. While the most decline was of Rs 4,400 in a single day. However, after a pullback in the early hours, MCX gold price reclaimed its Rs 83,000 per 10 grams mark, nearing its all-time high levels.

Gold Prices In India:

24K gold price dropped by Rs 4,400 in 100 grams to Rs 8,40,500, while 10 grams gold slipped by Rs 440 to Rs 84,050. Meanwhile, 22K gold of 100 grams and 10 grams prices shed Rs 4,000 and Rs 400 to Rs 7,70,500 and Rs 77,050 respectively. Further, 100 grams of gold dipped by Rs 3,30 to Rs 6,30,400 and 10 grams of gold fell by Rs 330 to Rs 63,040 in 18 carats.

Silver Prices In India:

Silver prices were unchanged at Rs 99,500 per 1kg. However, in cities like Hyderabad, Chennai and Kerala, silver stood highest at Rs 1,07,000 per 1kg.

MCX Gold, Silver Prices:

MCX gold price with April 2025 expiry ended at Rs 83,218 per 10 grams, up by Rs 914 or 1.11%. While MCX silver price stood at Rs 94,350 per 1 kg, higher by Rs 1,136 or 1.22%.

Spot Gold Prices:

After a bearish tone, spot gold price rose to hit a new record high of $2,820 per ounce on February 3. As per Trading Economics, amid a wave of looser monetary policy from major central banks the market assessed the impact that unclear trade policy from the US may have in the global economy. The US imposed 10% tariffs on China and 25% tariffs on Canada, but delayed plans of restrictions on Mexico to raise hopes of less protectionism by the world’s largest economy, but support demand for safety due to the situation’s unpredictability. Meanwhile, markets expect the Fed to deliver two rate cuts this year.

Trading Economics data added that, in turn, the Bank of Canada cut its main interest rate and announced the end of quantitative tightening, in addition to a base scenario for the purchase of government debt shortly. Also on the policy front, both the ECB and Swedish Riksbank delivered rate cuts, while central banks from major gold consumers in the PBoC and RBI also signaled looser monetary policy and higher liquidity in the near future.

How Donald Trump’s Tariff will impact gold prices in India?

Donald Trump’s tariff war heightened on Canada, Mexico and China. Canada and Mexico have stated that they will impose retaliatory tariffs, while China has signalled for corresponding countermeasures to challenge Trump’s tariff policies. According to the 47th President of the US, tariffs are required to stop the transaction of illegal drugs and immigration in his country.

Trump has levied about 25% tariff each on Mexico and Canada while imposing 10% on imports from China.

Colin Shah, MD, Kama Jewelry said, the US has imposed a 25% tariff on all goods imported from Mexico and Canada and 10% on Chinese goods. Following this, Mexico and Canada has also retaliated with levies against US after Trump imposes tariffs on them. China will devalue its currency in line with the tariffs announced.

Shah added, the effects of these were observed in the domestic market as well where INR has hit all-time low of 87.20/$ post rise in the dollar index.

Moving ahead, Shah said, gold prices will see some corrections till the rally continues in dollar index. He said, “We expect gold prices to be in focus in 2025 which will be driven by the Trump’s stance on tariffs.”