In a landmark development for the Indian bullion market, gold prices have breached the ₹1 lakh mark for 10 grams, driven by strong global cues and firm domestic demand. On Tuesday, April 22, 24-karat gold (99.9% purity) was priced at ₹10,135 per gram, translating to ₹1,01,350 for 10 grams, according to data from Goodreturns. This is the first instance of gold surpassing the ₹1 lakh threshold in India.
Prices for other variants also surged, with 22-karat gold trading at ₹9,290 per gram and 18-karat at ₹7,601 per gram.
On the international front, spot gold climbed to a record high of $3,473.03 per ounce, while US gold futures jumped by 1.7% to reach $3,482.40 per ounce. The surge is largely attributed to growing geopolitical tensions, currency fluctuations, and fears of a global economic slowdown.
Fueling investor anxiety, former US President Donald Trump recently renewed criticism of Federal Reserve Chair Jerome Powell, calling for immediate rate cuts and warning of an impending economic downturn in the US. These comments have further weakened the US dollar and steered investors toward safe-haven assets like gold.
“Investors have been shunning US assets due to ongoing tariff disputes and political tensions, giving gold a solid edge amid dollar weakness,” said Tim Waterer, Chief Market Analyst at KCM Trade.
Asian markets reflected the global nervousness, with stocks facing renewed pressure after US assets witnessed sharp sell-offs. Meanwhile, China lashed out at the US over its tariff practices and advised other nations to avoid entering trade arrangements that could harm their economic sovereignty.
Jateen Trivedi, VP and Research Analyst – Commodity and Currency at LKP Securities, noted that the gold rally has gained momentum with the onset of the new week, backed by sustained early buying.
“The bullish trend is supported by multiple factors including trade tensions, US economic instability, and debt crisis fears. Central banks, particularly China’s, along with institutional investors, continue to accumulate gold, reinforcing the upward trajectory,” Trivedi added.
From a technical standpoint, Trivedi emphasized that the uptrend remains firm as long as Comex gold prices stay above $3,250 per ounce and MCX gold holds above ₹91,000 per 10 grams. He also pointed out that any pullback toward ₹93,000 may present buying opportunities, although caution is advised due to ongoing market volatility.
Investors are now closely watching for statements from US Federal Reserve officials later this week, which may provide further insight into the direction of interest rates and inflation trends.
As uncertainty continues to dominate global financial markets, gold retains its appeal as a traditional safe-haven asset, cementing its position at the forefront of investor strategies.