Indian benchmark indices Sensex and Nifty 50 closed higher on Thursday, lifted by positive global cues after a U.S. federal court blocked former President Donald Trump’s proposed country-specific tariffs. The ruling sparked a global equity rally and lifted investor sentiment across emerging markets, including India.
The U.S. Court of International Trade, based in Manhattan, ruled that the Trump administration’s reciprocal tariffs, aimed at several U.S. trading partners, were unconstitutional. The court asserted that only Congress holds the power to regulate international commerce, and that presidential emergency powers do not override this authority.
This legal decision triggered broad-based gains in equities and commodities, reflecting a renewed risk appetite among investors. However, gold prices bucked the trend, falling sharply as its safe-haven appeal diminished.
Gold Prices Under Pressure Amid Risk-On Mood
Spot gold fell 0.6% to $3,271.17 per ounce, while U.S. gold futures dropped 0.8% to $3,268.20. In India, MCX gold prices also declined by 0.61% to ₹94,701 per 10 grams, reflecting the global sell-off.
“Gold prices remain under pressure amid improving risk sentiment,” said Ajay Kedia, Director of Kedia Advisory. “The blocking of Trump’s tariffs supports crude and base metal prices, but weakens the outlook for gold.”
Kedia also highlighted gold’s failure to breach the ₹96,000–₹96,500 resistance zone in recent sessions. “A weekly close below ₹95,000 may signal a further decline toward ₹92,200, with major support around ₹89,500,” he added.
Investor Sentiment Split Between Equities and Gold
Mohit Gulati, CIO and Managing Partner at ITI Growth Opportunities Fund, cautioned investors against overreacting to the market rally. “The recent ruling has triggered a risk-on sentiment, but beneath the surface lies deeper instability,” he said. “The U.S.’s vacillation between protectionism and liberalization has eroded its global economic credibility.”
Gulati warned that while equities may look attractive in the short term, the long-term unpredictability of global economic policy reinforces the importance of holding gold. “Gold remains a universal hedge against systemic volatility in a multipolar world,” he noted. “This rally may be a mirage; gold’s value as a long-term store of stability persists.”
Outlook: Short-Term Optimism, Long-Term Uncertainty
Prashanth Tapse, Senior Vice President (Research) at Mehta Equities, echoed similar sentiments, noting that while the U.S. court ruling has lifted investor mood, global trade tensions are far from resolved.
“The verdict has eased immediate concerns over trade wars, lifting U.S. stock futures and boosting emerging markets like India,” Tapse said. “However, broader uncertainty around global trade policy remains and could fuel further volatility.”
Tapse pointed to the anticipated U.S.-India trade agreement expected in June 2025 as the next key catalyst for markets. “That event will be crucial in shaping the future of bilateral trade and could determine the near-term direction for Indian equities,” he added.
