New Delhi— Gold prices in India hit a historic milestone on Tuesday, with 24-carat gold crossing ₹1,00,000 ($1,200) per 10 grams for the first time, driven by strong global demand and economic uncertainty.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold surged from ₹96,670 to ₹1,00,000 per 10 grams — a sharp increase of ₹3,300 in just 24 hours.
Other gold categories also saw significant gains. The price of 22-carat gold rose to ₹97,600 per 10 grams, while 20-carat gold reached ₹89,000, and 18-carat gold climbed to ₹81,000 per 10 grams.
On the Multi Commodity Exchange (MCX), October gold futures briefly crossed ₹1 lakh, reaching an all-time high of ₹1,00,484 per 10 grams — up nearly ₹2,000 or 2% in a single day.
Analysts attribute the spike to rising global demand for gold as a safe-haven asset amid geopolitical tensions and economic uncertainty. Colin Shah, Managing Director of Kama Jewellery, said the latest surge reflects increasing market volatility due to tensions between President Trump and Federal Reserve Chair Jerome Powell over interest rate policies.
The weakening U.S. dollar and recent rate cuts by the Federal Reserve have made gold more attractive, as lower rates reduce the opportunity cost of holding the non-yielding asset. Central banks, including those in India and China, are also boosting their gold reserves in a strategy known as de-dollarization, aiming to reduce reliance on the U.S. dollar.
“While gold prices continue to rise, the falling dollar makes gold relatively affordable in other currencies, keeping global demand stable,” Shah added. He also noted that domestic demand tends to rise around festivals like Akshaya Tritiya, contributing to seasonal price increases.
Given these global and domestic factors, analysts expect gold prices to remain elevated in the near future. (Source: IANS)
