Gold Prices Climb Amid Trade Tensions

Gold prices increased on Thursday, driven by heightened safe-haven demand following US President Donald Trump's imposition of an additional 25% tariff on Indian imports. This move intensifies trade tensions between the two economies.

The spot gold price advanced 0.3% to $3,378.18 per ounce, whilst US gold futures climbed 0.4% to $3,445.60. The yellow metal approached the significant $3400 mark, as risk-based assets remained unsettled by continuous tariff announcements from the US president.

Market Reactions and Analyst Insights

"Trump has been dishing up fresh tariff threats which is keeping gold in the frame as a defensive play for investors," Tim Waterer, chief market analyst at KCM Trade, told Reuters.

Trump’s decision came on the back of trade deal talk stalemate and India’s continued procurement of Russian crude oil. The additional duty, which takes effect 21 days after August 6, will increase the total tariffs on certain Indian exports to 50%, the highest rate applied to any trading partner of the United States.

Future Outlook and Other Precious Metals

Additionally, Trump announced plans to implement a 100% tariff on semiconductor imports, with exceptions for companies manufacturing in the US. The dollar index remained close to its lowest point in over a week, strengthening gold's position.

In other precious metals trading, silver increased by 0.5% to $38.04 per ounce, whilst platinum decreased by 0.4% to $1,328.77, and palladium showed a rise of 1.3% to $1,146.80.