Gold Rises On US Risks And Tariff Worries

Gold ticked higher on Friday as a now-month-long US government shutdown and renewed tariff uncertainty in the US pushed risk-averse investors into bullion. Spot gold was trading around $3,996.3 an ounce around 11 AM on 7 November, with US gold futures near $4,003.45. By contrast, the metal was trading close to $3,989.91 per ounce by 1:40 P.M in the previous session, a small move but one that reflects renewed safe-haven buying. Investors face a clear question: is this a short-term flight to safety or the start of a longer run for bullion as policy risks mount?

What Changed This Week To Lift Bullion Demand?

Two themes drove buying in the last 24–48 hours:

• US shutdown shock: The ongoing US federal shutdown, already the longest in modern history, is weighing on economic forecasts, dampening risk appetite and nudging traders into non-yielding assets such as gold. Air-traffic control disruptions and other real-economy pain points underline the economic risk, escalating safe-haven flows.

• Tariff uncertainty and trade risk: Fresh legal and political questions around US tariff policy have increased the perceived risk to global trade and industrial activity, another classic tailwind for precious metals as investors seek protection from policy-driven volatility. Market commentary ahead of tariff-related hearings has amplified this effect.

Together, these factors weakened the dollar modestly and reduced immediate expectations for an aggressive Fed-rate move that would otherwise hurt non-yielding gold. The resulting softness in the dollar made bullion more affordable for holders of other currencies, lending support to prices.

What Are The Prices Investors Should Note Today (7 Nov 2025)?

• Spot gold (global): $3,996.3 /oz (7 Nov 2025). U.S. December futures ~$4,003.45. (Yesterday: near $3,989.91/oz).

• Gold (India, 7 Nov 2025): 24-carat ~₹12,202 per gram; 22-carat ~₹11,185 per gram (daily city averages).

• Silver (global & India, 7 Nov 2025): Indian retail quotes show ~₹1,52,500 per kg (≈₹1,525 per 10g) on 7 Nov. As with gold, silver has been supported by safe-haven flows and some industrial repricing.

(Note: These are the market prints at the time of writing; intraday moves can change levels materially. Always check live quotes when placing trades.)

What Should Investors Watch Next?

• US political developments: Any progress to end the shutdown or new fiscal risks from funding standoffs will move sentiment quickly. A near-term funding deal would likely remove some safe-haven support and pressure metal prices.

• Tariff/legal outcomes: Clarifying moves by the courts or Congress on tariff policy could ease trade uncertainty; the opposite outcome would likely support further upside in bullion.

• Dollar and real yields: Gold is sensitive to real (inflation-adjusted) yields. If the dollar weakens further and real yields fall, gold typically benefits; conversely, a stronger dollar or rising real yields would be a headwind.

• Technical levels to note: $3,900–$3,950 has acted recently as short-term support; $4,100–$4,200 would be a psychological resistance zone if risk aversion persists. Investors may use stop management and position sizing, bullion can gap on geopolitical surprises.

References

Trading Economics
Investing.com
The Financial Express
Reuters
Reuters
Goodreturns
Goodreturn
The Financial Express
Reuters