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HomePersonal Finance NewsGold prices slip but stay strong: What investors should watch amid US tariff uncertainty
In India, gold prices saw a decline, with 24K gold falling by ₹330 to ₹8,945.3 per gram, while 22K gold dropped ₹300 to ₹8,201.3 per gram.
By Anshul March 26, 2025, 11:24:49 AM IST (Published)
Gold prices remained stable on Wednesday (March 26) as investors closely watched potential US tariff policies, which could fuel inflation and slow economic growth. Spot gold held at $3,019.72 per ounce, while US gold futures slipped 0.1% to $3,023.60 per ounce.
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In India, gold prices saw a decline, with 24K gold falling by ₹330 to ₹8,945.3 per gram, while 22K gold dropped ₹300 to ₹8,201.3 per gram.
The decline comes as global economic concerns continue to drive demand for the precious metal, although resistance at higher levels remains.
Market analysts pointed to growing fears of a stagflationary scenario in the US, where economic growth slows while inflation remains elevated. US consumer confidence has fallen to its lowest level in over four years, with households increasingly worried about a recession.
The upcoming April 2 tariff decision by the US administration has also added to market nervousness, as investors anticipate policies that could further strain global trade.
Gold, which is traditionally seen as a safe-haven asset, has surged 15% so far this year, hitting an all-time high of $3,057.21 on March 20.
Analysts at ANZ predict gold could reach $3,200 by September, though a hawkish stance from the Federal Reserve could slow its momentum.
Investors are closely watching Fed officials' speeches and the upcoming U.S. PCE inflation data on Friday for further clues on monetary policy direction.
According to Rahul Kalantri, VP Commodities at Mehta Equities, technical indicators suggest gold has support at $3,000-$2,982 per ounce and resistance at $3,044-$3,060 per ounce.
In the Indian market, gold is supported at ₹87,340-₹87,080 per 10 grams, while resistance is seen at ₹87,710-₹87,900 per 10 grams.
With gold continuing to act as a hedge against economic uncertainty, investors must track US inflation trends, potential tariff hikes, and geopolitical developments, including the ongoing Russia-Ukraine negotiations.
While gold remains strong above $3,000, the outlook will depend on how inflation and central bank policies evolve in the coming months.
