Pausing steady gold ahead of the reciprocal tariff!

 

Pushing US to exacerbate inflation & stymie economic growth  

According to the Augmont Bullion! Gold holds steady ahead of Trump's reciprocal tariff threats! Gold prices remained stable as market investors squared their positions ahead of US President Donald Trump's sweeping reciprocal tariff plans, which they fear will exacerbate inflation and stymie economic growth. The focus is now on potential reciprocal tariffs that the US administration may impose on April 2, prompting some market concern.  

In March, U.S. consumer confidence fell to its lowest level in more than four years, with households dreading a potential recession and increased inflation caused by tariffs. On the geopolitical front, the United States on Tuesday negotiated deals with Ukraine and Russia to halt their strikes at sea and against energy targets, with Washington agreeing to attempt to lift certain sanctions against Moscow.

Considering the Technical Triggers, Gold has strong support at $3010 (~Rs 87200), if prices fall below this level, we could see further retracement and profit-booking in prices up to $2985 (~Rs 86500). Silver is trading in a range of $33 (~Rs 97000) to $35(~Rs 102,000) from the last few days. Buy on dips and sell on rallies should be the strategy used.  

In the row, Colin Shah, MD, Kama Jewelry said on, Gold Performance in FY25 and Outlook for FY26. “Gold prices surged approximately 15.4% in the global market, 14% in the domestic market in FY25. This marks one of the strongest performances in a year for gold in a decade.  

This remarkable rise was primarily driven by falling interest rates, geopolitical tensions, and robust central bank demand. The RBI purchased 32.63 tonnes of gold in the first half of FY25, increasing its total reserves to 854.73 tonnes. As of March 2025, gold prices reached an all-time high, surpassing $3,000 per ounce, influenced by anticipated interest rate cuts by the U.S. Federal Reserve.  

As we enter the fiscal year 2026 (FY26), we anticipate continued growth in gold prices on the back of several factors - the likelihood of further rate cuts by the US Fed, geopolitical tensions, and Trump’s tariff threats. These factors combined will drive gold prices upwards. However, a few potential challenges like strengthening the U.S. dollar and shifting investor preferences towards other asset classes may deter gold's performance in FY26.”



 



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