Gold Inches Towards ₹1 Lakh-Mark Amid Global Uncertainties and Weak Dollar
Gold prices in the national capital surged sharply on Monday, moving closer to the psychological ₹1 lakh per 10 grams mark, driven by a weakening dollar and ongoing US-China trade tensions.
New Delhi: Gold prices in the national capital surged sharply on Monday, moving closer to the psychological ₹1 lakh per 10 grams mark, driven by a weakening dollar and ongoing US-China trade tensions.
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According to the All India Sarafa Association, 24-carat gold (99.9% purity) jumped ₹1,650 to settle at ₹99,800 per 10 grams. On Friday, it had closed at ₹98,150. Similarly, gold of 99.5% purity climbed ₹1,600 to reach ₹99,300 per 10 grams, rebounding from its previous close of ₹97,700.
Massive Bullion Gains in 2024
So far this year, gold prices have surged by ₹20,850 or 26.41%, fueled by concerns over global economic stability, expectations of interest rate cuts, and rising geopolitical risks.
Silver also saw a notable rise, gaining ₹500 to touch ₹98,500 per kg, up from ₹98,000 in the previous session.
Gold Futures Hit New Records
On the Multi Commodity Exchange (MCX), June gold futures leapt ₹1,621 or 1.7%, reaching a fresh peak of ₹96,875 per 10 grams.
Globally, spot gold prices soared to a record high of USD 3,397.18 per ounce before slightly easing to USD 3,393.49. Gold futures breached the key USD 3,400 mark for the first time ever, spiking USD 80 or 2.4% amid sustained safe-haven demand.
Analysts Cite Trade Tensions, Fed Concerns
Satish Dondapati of Kotak Mahindra AMC attributed the rally to “ongoing trade tensions, geopolitical concerns, and a weakening US dollar.” Since the US announced new tariffs on April 2, gold has gained over 6%, he noted.
Pranav Mer of JM Financial Services said rising US Treasury yields, concerns over US monetary policy, and safe-haven ETF buying have further buoyed gold prices.
Adding to the pressure on the dollar, US President Donald Trump’s reported threat to remove Federal Reserve Chair Jerome Powell has fueled investor fears and bolstered demand for bullion, said Kaynat Chainwala of Kotak Securities.
Eyes on Trump’s Tariff Strategy and FOMC Signals
Chintan Mehta of Abans Financial Services said investors are closely monitoring President Trump’s evolving tariff strategy and any signals from the Federal Reserve, which could further influence interest rate expectations and safe-haven flows.
Spot silver also gained momentum, rising nearly 1% in Asian markets to USD 32.85 per ounce.
With gold nearing ₹1 lakh and silver inching towards ₹1 lakh/kg, market observers expect the trend to continue if global uncertainty persists.
