Gold Prices Surge as Old Tariff Ghosts Return to Haunt Markets

Gold price saw a strong surge in early Monday trading, as a weaker dollar and revived tariff tensions linked to former U.S. President Donald Trump’s policies boosted safe-haven demand among investors. On the Multi Commodity Exchange (MCX), the June 5 Gold futures contract jumped 0.95% to ₹93,317 per 10 grams around 9:10 AM, marking a notable upward shift for the precious metal.

Global Concerns Drive Local Momentum

The rally isn’t just a local trend. International gold prices also edged higher, following comments by U.S. Treasury Secretary Scott Bessent cautioned that Trump is ready to reinstate tariffs on trade partners that are not willing to engage in sincere negotiations.

During an interview broadcast on Sunday, remarked:

“Trump would impose tariffs at the rate he threatened last month on trade partners that do not negotiate in good faith on deals.”

This hardline stance has reignited fears of another round of global trade instability—concerns that traditionally push investors toward the safety of gold.

Dollar Weakness Adds Fuel to Gold’s Rise

Adding to the bullish sentiment, the U.S. Dollar Index slipped by nearly 0.3%, making gold more affordable for buyers using other currencies. Since gold is priced in dollars, a weaker greenback generally leads to increased demand and higher prices.

Market Sentiment and Expert Views

Experts say the current momentum in gold prices is being driven by a mix of geopolitical uncertainty, currency shifts, and speculative buying. Technical analysts are now closely watching the ₹94,000 resistance zone on MCX, while support is expected around ₹92,200 levels.

With tariff tensions once again rattling markets and the dollar on the back foot, gold could remain in the spotlight this week.