Spot gold opens higher tracking record high prices on MCX post tariff threat
This story was originally published at 14:21 IST on 27 January 2026
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MUMBAI – Spot gold prices opened higher Tuesday, tracking record high prices of futures contracts on the Multi Commodity Exchange of India as US President Donald Trump threatened tariffs on multiple countries, aggravating global trade tensions. Market participants' sentiment was also lifted by fear of a possible US government shutdown.
In the Mumbai spot market, the price of gold of 99.9% purity was INR 159,027 per 10 grams, higher than INR 155,428 per 10 grams Friday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association. Dealers are charging a premium of INR 2,000 per 10 grams on gold prices, Jain said.
On Monday, US President Trump said that tariffs on imported automobiles, pharmaceuticals, and lumber from South Korea would be raised to 25% from the current 15% as the country's legislature hasn't enacted the trade agreement with the US, Dow Jones reported. This was after he threatened tariffs on Canada in the backdrop of a thawing relationship between the two countries, when Canadian Prime Minister Mark Carney visited China earlier this month. Trump said he would impose 100% tariffs on Canada if it follows through on a trade deal with China.
Gold prices were also supported by fears of a US government shutdown after the deadly shooting in Minneapolis over the weekend led Senate Democrats in the country to demand changes to homeland-security provisions in a government funding package. "...investors fear over another government shutdown after Democratic leaders threatened to block approval of a $1.2 trillion funding package if it includes additional allocations for Homeland Security. Moreover, concern over Fed independence and strong central bank buying would be supportive for the prices," ICICI Direct said in a report.
The rise in gold prices was capped as market participants expect the US Federal Reserve to hold interest rates steady at its monetary policy meeting beginning Tuesday. End
Reported by Reshma Ravi
Edited by Avishek Dutta
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