Gold rate today: Gold prices climb as Donald Trump imposes 50% tariff on India; safe haven assets in focus

Gold rate today: Gold prices increased on Thursday due to heightened safe-haven demand after US President Donald Trump imposed an additional 25% tariff on Indian imports, intensifying trade tensions between the two economies.The spot gold price advanced 0.3% to $3,378.18 per ounce at 0452 GMT, 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.“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.Also Read | Gold & silver price prediction today: Will gold continue trading above Rs 1 lakh mark – what’s the outlook and should you buy or sell?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%, which is the highest rate applied to any trading partner of the United States.Additionally, Trump announced plans to implement a 100% tariff on semiconductor imports. However, he included a significant exception: companies that currently manufacture or have pledged to manufacture in the United States will be exempt from this tariff.The dollar index remained close to its lowest point in over a week following unexpectedly poor US employment figures last week, which led to speculation about a US rate reduction in September, thereby strengthening gold’s position.Based on the CME Group’s FedWatch Tool, market participants now estimate a 95% likelihood of a 25 basis point reduction in rates next month.Minneapolis Fed President Neel Kashkari indicated that the Federal Reserve might need to implement rate cuts soon due to the decelerating US economy.As a historically reliable safe-haven investment during times of political and economic uncertainty, gold typically performs well when interest rates are low.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.