The global financial markets are reacting strongly to the tariff impositions by former US President Donald Trump, with gold and silver prices surging as investors seek safe-haven assets. Concerns over a potential trade war with Mexico, Canada, and China have heightened economic uncertainty, leading to increased demand for precious metals.

Gold Surges 10% – Outpaces Bitcoin’s Decline

Gold prices have jumped 10% this year, significantly outpacing Bitcoin, which has declined over 3% in the same period.
Silver has remained stable but is expected to surge in the coming months, with predictions suggesting it could hit ₹1,15,000 per kg.

Current Gold & Silver Prices (March 6, 2025):

• Gold: ₹86,038 per 10 grams
• Silver: ₹97,070 per kg

Expert View:
Renisha Chainani, Head of Research at Augmont, explains, “Trump’s economic policies, which many believe increase uncertainty, have pushed safe-haven bullion up by more than 10% this year.”

Trump Tariffs: What’s Happening?

Trump’s aggressive tariff policy has reignited global trade tensions, impacting markets worldwide.

Key Tariff Actions So Far:

25% tariffs imposed on imports from Mexico and Canada (announced Tuesday).
Duties on Chinese goods doubled from 10% to 20%, escalating tensions.
China retaliated with:

• 15% tariffs on US agricultural goods
• Bans on trade with US defense companies
  Canada introduced phased levies on $107 billion worth of US goods.
  Mexico pledged countermeasures but hasn’t detailed specific actions yet.
  Trump announced "reciprocal tariffs" targeting China, India, and other nations starting April 2, 2025.

Trump’s Statement: "This move is about making ‘America Rich Again.’ Every country has taken advantage of us with tariffs, and we are putting an end to it."

How Trump’s Tariffs Are Driving Gold & Silver Prices Higher

Gold & Silver Prices Respond to Trade Tensions

Gold Price Surge:

• Gold is trading above $2,925 per ounce, as the US dollar weakens due to rising global tensions.
• Augmont’s Renisha Chainani expects gold to test new resistance levels at $2,940 (₹86,300) and $2,975 (₹87,000).

Silver Poised for a Rally:

• Silver has been range-bound between $31.5 (₹93,000) and $34 (₹97,000).
• Analysts predict silver could break above $38 (₹1,15,000) in the next few months.

Expert Analysis:
Kunal Shah, Nirmal Bang, explains:
"Silver has been running at an 8% supply deficit for the last three years. The supply of scrap silver—once a major factor controlling prices—is now reducing in India and China. I expect silver prices to jump 15-20% in the next three to four months."

Potential Limitations on Gold & Silver Price Surge

While global uncertainty is driving demand for gold and silver, there are factors that could slow down price increases.

Kaynat Chainwala, AVP (Commodity Research) at Kotak Securities, says:
"Gold is trading near $2,925 per ounce today, but its upside could be limited. US Commerce Secretary Howard Lutnick has hinted at possible tariff relief for Canada and Mexico. If a trade agreement is reached and tariffs are eased, we might see downward pressure on gold prices."

What’s Next for Gold & Silver Investors?

Gold remains a strong safe-haven asset, especially in times of trade uncertainty. Investors should watch for any major US-China trade developments that could impact prices.

Silver has the potential for a breakout rally, with experts forecasting a 15-20% surge in the next few months.

Key Factors to Watch:

Further escalation or resolution of the US-China trade war.
US dollar fluctuations impacting commodity prices.
Government policies on tariffs and potential trade deals.
Global inflation concerns that may drive more investors toward safe-haven metals.

A Golden Opportunity or a Risky Bet?

Gold & silver are currently benefiting from Trump’s trade policies, but any easing of tariffs could reverse the trend. Investors should remain cautious, track market developments, and diversify their holdings to manage risk.