Global markets are reacting again after Donald Trump's possible return to aggressive trading policies. One of the first and most notable ripple effects can be seen in the Gold market. This is especially true in India, one of the largest gold consumers in the world.
Investors are particularly concerned about Trump's recent decision to double tariffs for Indian imports, up to a massive 50%, in response to India's continued trading with Russia. Indian investors are now re-evaluating their portfolios in light of these recent developments. Gold is emerging once again as a safe haven asset.
This blog will cover a look at the impact of Trump's tariffs on gold investment trends in India, and why gold has become more attractive in times of economic uncertainty.
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Gold prices have historically reacted strongly to geopolitical or economic instability. This current situation is not any different. Global gold prices increased significantly as soon as Trump announced his 50% tariff.
Global gold spot price: Reached $3,378 per ounce
Gold futures: Touched $3,445.60 per ounce
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India spot Gold: Has crossed the Rs1 lakh mark and reached Rs1,02700 per 10 grams cities such as Delhi and Hyderabad.
Depreciation of the rupee has intensified price increases in India. Importing gold is more expensive as the rupee falls against the dollar. This leads to an immediate increase in the cost of local gold.
Gold is a proven hedge against uncertainty. Whenever trade wars, tariffs, or political instability make headlines, investors move away from equities and riskier assets toward gold, which holds its value better during turbulence.
With the rupee under pressure with increasing import bills and potential capital outflows, gold acts as a natural hedge. It protects wealth from the erosive impact of currency depreciation.
Many global analysts now expect the U.S. Federal Reserve to slow down or even cut interest rates to manage the fallout from Trump’s aggressive trade stance. When interest rates are low, gold becomes relatively more appealing because the opportunity cost of holding gold and other non-yielding assets declines.
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According to the World Gold Council, India's total gold demand fell 10% year-on-year to 134.9 tonnes in Q2 FY26.
Jewellery consumption, which makes up a large share of this demand, declined by 17%, falling to 88.8 tonnes.
However, investment demand went up by 7%, rising to 46.1 tonnes. This signifies a change in the attitude of the consumer - from ornamental gold purchases to investment-driven decisions.
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People are increasingly using:
Sovereign Gold Bonds (SGBs)
Gold Exchange-Traded Funds
Digital Gold platforms
These give exposure to gold without the problems of physical storage, and are even more appealing when the prices are high.
The fall of the rupee is probably the most direct result of Trump's tariffs against India. As international trade routes become costlier and foreign investments start to waver, the rupee tends to weaken.
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Because gold is globally priced in U.S. dollars, a weaker rupee amplifies its domestic cost - regardless of what’s happening with the global spot price.
For buyers in India, this means they could pay a lot more for the same amount of gold than what they would have only a few months ago. With gold crossing psychological barriers (like Rs1,00,000 per 10 grams) buyers may start delaying purchases, especially in the jewellery category.
High gold prices also provide many with the incentive to offload idle gold assets, especially old/unused jewellery. This encourages the cash exchange market for gold. These services provide quick liquidity against gold and are more attractive as prices rise.
That said, it is worth advising sellers to be cautious. Fair valuation and testing of gold purity are more important than ever. That’s why individuals should only approach trusted gold jewellery buyers in Delhi and other major cities where transparency, karat testing, and proper documentation are standard practice.
Also Read:-Top Rated Trusted Gold Jewellery Buyer in Delhi
Analysts believe the gold rally will hold its strength in the medium-term despite short term volatility. The main drivers remain:
Global tensions remain high
Possible rate cuts from the U.S. Fed
Central banks still seeking gold, especially in China
Weakness in the Indian rupee continues
Analysts expect some short term profit taking after the rally, but they forecast a period of consolidation between $3,150 and $3,200/oz before proceeding onto the next potential uptrend.
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Prefer not investing all of your savings in gold. Use gold as a hedge in a well-balanced portfolio.
With gold prices sky-high, it doesn't make sense materially for everyone to buy physical gold. There are ETFs, SGBs, and digital gold as options to gain exposure without storage and making costs.
Volatility means prices may correct slightly after big spikes. Monitor the market and take advantage of dips for strategic buying.
You wish to cash into high prices by selling on old gold, it is best to sell to a gold cash exchange that gives an obvious valuation, and testing of the gold. Stick with known gold jewellery buyers in Delhi and other reliable places, because you will be underpaid otherwise.
While Trump's tariffs reverberate through global markets, gold continues to justify itself as a decided asset during uncertain times. For Indian investors, it's not just about the skyrocketing gold prices now, it's about intelligent, timely decisions that will yield made-to-measure stability over the long haul.
Whether you are buying, diversifying or liquidating old jewellery at the peak price you can get for it, trust and transparency is essential.
Here comes 24 Karat, among the trusted gold jewellery buyers in Delhi, with an esteemed reputation for accuracy of valuation, certified process for buying gold and instant payout. Visit today and get the best value when selling gold.
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Trump’s tariffs cause global economic uncertainty that leads investors to go for gold as a safe-haven asset.
Tariffs will devalue the rupee and increase the cost of imports, all of which will make gold more expensive in the Indian market.
Yes, the current high rates in the market mean it is an ideal time for you to get rid of your unused gold for maximum value.
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