Gold Prices Near ₹1 Lakh Mark in India Amid Trade Tensions

On Tuesday, April 22, 2025, Gold prices in India surged sharply and moved close to the ₹1 lakh per 10 grams milestone amid a global surge in the precious metal. In Delhi, rates for 24-karat gold leapt by ₹1,650 to reach ₹99,800 per 10 grams, as per data from the All India Sarafa Association. After including GST, gold prices in the retail market have already breached the ₹1 lakh threshold.

On the Multi Commodity Exchange (MCX), gold futures soared to an all-time high of ₹96,775 per 10 grams. Meanwhile, international spot gold touched a record $3,473.03 per ounce, while US gold futures advanced 1.7% to $3,482.40 per ounce.

Why are Gold Prices Rising?

The latest upswing in the yellow metal is mainly driven by escalating global uncertainties. Renewed criticism of Federal Reserve Chair Jerome Powell by former US President Donald Trump has shaken investor confidence. Trump’s calls for immediate interest rate cuts and his warning of an impending US economic slump further pressured the US dollar, prompting investors to flock to gold as a safe haven.

Slumping Dollar and Trade Tensions

A weakening US dollar, now below the key 100 mark on the dollar index, is a major factor behind gold’s rising allure. Recession worries and market volatility triggered by US-imposed tariffs and retaliatory moves from China are adding to investor anxiety, making gold a more attractive alternative.

Central Bank Demand at Record Highs

Central banks, especially across Asia, have stepped up their gold purchases to shield against dollar fluctuations. According to the World Gold Council, central banks globally acquired a record-breaking 1,037 tonnes of gold in 2024—a significant uptick signaling a strategic shift in reserve management.

Gold Returns in 2024

So far in 2024, gold has climbed over 30%, driven by rising geopolitical tensions and declining faith in dollar-based assets. The shift has been supported by increased inflows into gold-backed exchange-traded funds (ETFs) and aggressive buying by central banks around the world.

Also Read: Why Gold Prices Touched a New Record High in International Market?

Conclusion

Gold Price in India has reached ₹1 Lakh mark due to the falling dollar and trade tensions as well as the record high demand by central banks.

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