Gold Crosses ₹1 Lakh per 10 Grams: Why Prices Surged
Why in the news
On Tuesday, gold broke the psychological ₹1 lakh per 10 grams level for the first time. A weaker dollar, US Treasury bond sell-offs and tariff uncertainty drove demand for safe-haven assets.
Key facts
| Measure | Level |
|---|---|
| Spot price, 24-carat | ₹1,01,245 per 10 grams |
| Futures price | ₹99,000 per 10 grams |
| Gain this year | 30% |
| International price | Above $3,500 an ounce |
| US dollar | Three-year low, below 98 |
Drivers
- Weak dollar: President Trump pressed the Federal Reserve for sharp rate cuts and hinted at replacing Chair Jerome Powell.
- Trade war: China criticised US tariffs and warned against deals harming its interests.
- Reserve accumulation: gold’s reserve share rose from 12% (2019) to over 18% (2024), steadily since 2021.
Comparison and outlook
- The rally echoes July 2020, when gold passed ₹50,000 during the first COVID-19 wave.
- Short term strong, especially if US-China tension escalates; long-term outlook bullish on central bank buying and geopolitical risk.
- Analysts quoted: Renisha Chainani (Augmont), Anitha Rangan (Equirus Securities), Satish Dondapati (Kotak Mahindra AMC).
Exam angle
- Gold is a safe-haven asset that tends to rise when the dollar weakens.
- Milestones: ₹50,000 (July 2020) and ₹1 lakh (April 2025).