Gold trades over Rs 36,000 mark after Trump's latest tariff on China goods

Mumbai-India (Aug 2)  The price of gold on Friday crossed the Rs 36,000 mark on MCX futures, following a sharp upturn in international prices since Thursday night when US President Donald Trump announced the imposition of an additional 10 per cent tariff on $300 billion worth of goods imported from China.

The August future expires on Monday and is in the delivery period, while the October futures are trading above Rs 36,000 per 10 gram, a price not seen before.

 

On Friday, the yellow metal's price opened almost two per cent higher in Mumbai's physical market. Further, standard gold is now quoted at Rs 35,200 per 10 gram.

US officials and Chinese authorities were discussing the resolution of trade issues and the market was expecting a resolution. However, in a sudden announcement, the US announced 10 per cent tariff on import of goods worth $300 billion. Soon after, gold prices jumped in the international market.

The Indian market has been trading in discount since past one month but today discount has widened from around $20-25 per ounce or Rs.500/ per 10 gram to more than $30-$ or Rs.700-800 per 10 gram. Demand at this stage is not coming and following a sudden spurt in price, customers are preparing to stay put, jewelers say. They maintain that demand is very less while selling of old gold which was otherwise high has also slowed in last few days.

In fact, gold imported unofficially has been selling in Mumbai around Rs 34700 per 10 gram, which is Rs.500 lower than official gold. Unofficial gold is also keeping prices under check.

BusinessStandard

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