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Informist, Thursday, Aug. 7, 2025

 

--MCX October gold contract hits record high of INR 101,539 per 10 gm 

 

MUMBAI – Futures contracts of gold hit a record high on the Multi Commodity Exchange of India amid escalating trade tensions between the US and India. On Wednesday, US President Donald Trump announced an additional 25% tariff on Indian goods, saying the country directly or indirectly imported Russian oil. Gold is seen as a safe-haven asset against geopolitical tensions and economic uncertainties.

 

Previously, on Jul. 30, Trump had announced a 25% tariff on Indian goods shipped to the US, along with an additional unspecified penalty for India's procurement of military equipment and energy from Russia. The 25% tariff is set to kick in from Thursday and, according to the White House order, the additional 25% tariff will be collected from Aug. 27.

 

The Indian government has called the move "unfair, unjustified and unreasonable." New Delhi also reiterated its stance that its oil imports were based on market factors and were done with the overall objective of ensuring energy security of the country. "It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," Randhir Jaiswal, the official spokesperson for the Ministry of External Affairs, said in a statement Wednesday.

 

At 1045 IST, the most-active October gold contract on the MCX was up 0.2% at INR 101,430 per 10 grams, after touching an all-time high of INR 101,539 per 10 grams. On the COMEX, the most-active December gold contract was 0.3% higher at $3,445.4 per ounce.

 

"We expect precious metals prices on Indian bourses to trade range bound to higher for the day; as gold prices gained as traders weighed uncertainty created by President Donald Trump's latest trade moves, including threatening a 100% tariff on chip imports," Nirmal Bang said in a note.

 

According to experts, the 25% tariff announced earlier could push, for the first time in four years, India's total exports below $400 billion in 2025-26 (Apr-Mar) and pose a downside risk of at least 20 basis points to economic growth.  End

 

US$1 = INR 87.72

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Afra Abubacker

Edited by Ashish Shirke

 

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