Gold Prices Cross Rs.1 Lakh Mark to Set All-Time High in India

Gold Prices Cross Rs.1 Lakh Mark to Set All-Time High in India. In a significant development for investors and consumers alike, gold price crosses Rs.1 lakh per 10 grams in India for the first time on April 22, 2025. The 24-karat gold (99.9% purity) surged to Rs.1,01,350 per 10 grams, equivalent to Rs.10,135 per gram. This psychological milestone was recorded just ahead of Akshaya Tritiya, an auspicious day in Indian tradition known for gold purchases. On the Multi Commodity Exchange (MCX), gold for August delivery hit an all-time high of Rs.1,00,000 during intra-day trading.
Gold Rates Across Karats
While 24-karat gold reached Rs.1,01,350 per 10 grams, prices of other purities also saw a steep rise. The 22-karat gold price stood at Rs.9,290 per gram, and 18-karat gold was priced at Rs.7,601 per gram. This sharp rise comes amid strong international trends and domestic demand.
International Rally: Spot Gold and Futures Hit Record Highs
Globally, spot gold surged to a record $3,473.03 per ounce, and U.S. gold futures rose 1.7% to $3,482.40 per ounce. The international rally has had a direct impact on Indian prices, especially as the Indian rupee hovers around 85 against the dollar. With such global traction, the precious metal continues to attract investments.
Why Are Gold Prices Increase rapidly?
The surge in gold prices is not a random spike. Several factors—economic, political, and strategic—are at play. Below are five key reasons that explain this exceptional rise in gold value:
1. Geopolitical Tensions and Global Uncertainties
The geopolitical environment has become increasingly volatile. The U.S.-China trade war has taken a new turn, with tariffs reaching 125% on American goods and 145% on Chinese exports. Simultaneously, global unrest in the Middle East and Eastern Europe has intensified.
These developments are leading investors to seek safer options. Gold has historically performed well during global instability. As uncertainties rise, so does the demand for gold, seen as a reliable store of value. This safe-haven appeal is one of the primary drivers behind the gold rally.
2. Weakening U.S. Dollar
Another major contributor is the depreciation of the U.S. dollar. The Dollar Index (DXY) has fallen below the 100 mark, indicating a loss of strength against other global currencies. A weak dollar makes gold cheaper for investors using other currencies, increasing its demand.
In addition, U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell and his calls for immediate interest rate cuts have led to instability in U.S. financial markets. As a result, the dollar has weakened further, making gold an attractive alternative.
3. Rising Fear of U.S. Recession
According to Goldman Sachs, the probability of a U.S. recession over the next 12 months has risen to 45%. Market concerns are rising due to aggressive trade policies and increasing economic uncertainty.
Investors are pulling out of U.S. Treasuries, previously considered a safe asset, and are shifting towards gold. As bond yields climb and their reliability drops, gold continues to emerge as the more secure option, thereby pushing up its price.
4. Surge in ETF Inflows
Investors are not just buying physical gold. The surge in gold Exchange Traded Funds (ETFs) highlights growing retail and institutional interest. Data from ICRA Analytics shows ETF inflows nearly doubled year-on-year to Rs.1,979.84 crore in February 2025 from Rs.997.21 crore a year ago.
ETFs offer advantages such as liquidity, transparency, and lower cost compared to physical gold. This makes them especially attractive during volatile market periods, leading to a significant impact on gold demand and prices.
5. Central Bank Gold Purchases
Central banks across the world, particularly in Asia, have ramped up their gold reserves. According to the World Gold Council (WGC), net central bank purchases reached 1,037 tonnes in 2024. This marks the third consecutive year of substantial accumulation.
Such a trend indicates a shift away from dollar dependency and a move toward financial resilience. Nations are hedging against economic instability, currency devaluation, and external shocks by turning to gold, which further supports its price.
What Analysts Say?
Experts believe that as long as COMEX gold remains above $3,250 per ounce and MCX gold stays above Rs.91,000 per 10 grams, the uptrend is expected to continue. According to Jateen Trivedi of LKP Securities, dips towards Rs.93,000 may present good buying opportunities. However, traders should remain cautious as volatility is still high.
Manav Modi from Motilal Oswal Financial Services observed that gold has already risen more than 20% in just four months of 2025. He believes the momentum could push prices towards $3,700 in the long term, with a domestic target range of Rs.96,500 to Rs.1,06,000.
Akshaya Tritiya Effect
The timing of this price milestone is also crucial. Akshaya Tritiya, an important festival in India for buying gold, is just around the corner. Traditionally, gold purchases spike during this period as it is considered auspicious.
Retail demand in anticipation of Akshaya Tritiya has further bolstered prices. Jewellers are witnessing increased footfall and advance bookings, adding short-term momentum to an already bullish market.
Impact on Indian Households
The crossing of the Rs.1 lakh mark is significant not just for traders but also for households. Many families view gold as a traditional investment. Uday Kotak recently called Indian housewives the “smartest fund managers”, acknowledging their instinct to buy gold during lows and hold for long-term gains.
However, the rising prices may affect short-term affordability, potentially shifting interest toward digital gold or ETFs, which offer lower entry points.
What's Next?
Going forward, market watchers will closely monitor comments from U.S. Federal Reserve officials. Their stance on inflation and interest rates will play a key role in determining the next phase of gold's trajectory.
Additionally, the geopolitical climate, dollar movement, central bank strategies, and investor sentiment will continue to influence gold's value. With the current momentum and supportive fundamentals, gold price crosses Rs.1 lakh could very well be the beginning of a longer rally.
Conclusion
The unprecedented rise in gold prices, touching the Rs.1 lakh mark, is a reflection of a complex global economic environment. From geopolitical tensions to weakening currencies and growing fears of recession, every factor seems to be contributing to gold’s bullish trend.
As the gold price hits Rs.1 lakh mark, it is evident that this precious metal continues to be the ultimate safe haven for investors. Whether you are a seasoned investor or a cautious household buyer, the current trend emphasizes gold's enduring value and resilience in turbulent times.
FAQs
Q1. What are the primary global and domestic factors that have contributed to gold prices reaching an all-time high of Rs.1 lakh per 10 grams in India?
Ans. The surge in gold prices is driven by a combination of global and domestic factors. Globally, ongoing geopolitical instability and concerns about a potential economic slowdown are increasing demand for safe-haven assets like gold. Cautious or contractionary monetary policies by central banks worldwide also elevate gold's appeal as a hedge against currency devaluation. Domestically, the steady depreciation of the Indian rupee increases the import cost of gold. Additionally, persistent inflationary trends within the Indian economy enhance gold's attractiveness as a store of value.
Q2. How is the record-breaking gold price affecting investment strategies, and what shifts are being observed in the financial market's response to this rally?
Ans. The gold price rally is prompting a shift in investment strategies, with traditional investors and institutions increasing their exposure to gold through physical purchases and financial instruments like ETFs and sovereign gold bonds. Market analysts anticipate gold will play a more significant role in risk management frameworks. Furthermore, there's a parallel increase in demand for gold loans due to higher collateral values, leading financial institutions to re-evaluate loan-to-value ratios and collateral management policies. Investment advisors are also revising asset allocation models to include more inflation-hedging components.
Q3. In what ways is the high gold price influencing consumer behavior and retail trends in India, particularly concerning jewelry demand?
Ans. While institutional demand is strong, high gold prices have tempered retail consumption. Jewelry demand has seen a decline in volume, even during traditional peak seasons. Consumers are showing a preference for lighter jewelry, gold coins, and digital forms of ownership. Retailers are adapting by introducing innovative purchasing schemes like installment plans and promotional offers to maintain consumer interest despite the pricing pressures.
Q4. What are the potential implications of soaring gold prices for India's trade and fiscal policy, and what regulatory responses might be considered?
Ans. High gold prices could lead to increased gold imports, potentially widening India's current account deficit. Policymakers and the Reserve Bank of India might consider adjusting import duties or revisiting gold monetization schemes to manage the impact on foreign reserves. Additionally, compliance frameworks like KYC and GST policies may be re-examined to address the increased value and volume of transactions in the bullion market.
Q5. Given the current economic climate and geopolitical landscape, what is the outlook for gold prices in the medium term, and what strategic advice is being given to investors and policymakers?
Ans. The future trajectory of gold prices will depend on ongoing geopolitical developments, interest rate adjustments by global central banks, and domestic economic indicators. If current trends persist, gold is likely to remain a preferred asset for wealth preservation and portfolio stability. Investors and financial professionals are advised to adopt a balanced strategy, utilizing gold for its hedging properties while staying informed about broader macroeconomic trends. For regulators and policymakers, the focus will be on implementing adaptive responses that ensure market stability without hindering investor freedom.

In a significant development for investors and consumers alike, gold price crosses Rs.1 lakh per 10 grams in India for the first time on April 22, 2025. The 24-karat gold (99.9% purity) surged to Rs.1,01,350 per 10 grams, equivalent to Rs.10,135 per gram. This psychological milestone was recorded just ahead of Akshaya Tritiya, an auspicious day in Indian tradition known for gold purchases. On the Multi Commodity Exchange (MCX), gold for August delivery hit an all-time high of Rs.1,00,000 during intra-day trading.

Gold Rates Across Karats

While 24-karat gold reached Rs.1,01,350 per 10 grams, prices of other purities also saw a steep rise. The 22-karat gold price stood at Rs.9,290 per gram, and 18-karat gold was priced at Rs.7,601 per gram. This sharp rise comes amid strong international trends and domestic demand.

International Rally: Spot Gold and Futures Hit Record Highs

Globally, spot gold surged to a record $3,473.03 per ounce, and U.S. gold futures rose 1.7% to $3,482.40 per ounce. The international rally has had a direct impact on Indian prices, especially as the Indian rupee hovers around 85 against the dollar. With such global traction, the precious metal continues to attract investments.

Why Are Gold Prices Increase rapidly?

The surge in gold prices is not a random spike. Several factors—economic, political, and strategic—are at play. Below are five key reasons that explain this exceptional rise in gold value:

1. Geopolitical Tensions and Global Uncertainties

The geopolitical environment has become increasingly volatile. The U.S.-China trade war has taken a new turn, with tariffs reaching 125% on American goods and 145% on Chinese exports. Simultaneously, global unrest in the Middle East and Eastern Europe has intensified.

These developments are leading investors to seek safer options. Gold has historically performed well during global instability. As uncertainties rise, so does the demand for gold, seen as a reliable store of value. This safe-haven appeal is one of the primary drivers behind the gold rally.

2. Weakening U.S. Dollar

Another major contributor is the depreciation of the U.S. dollar. The Dollar Index (DXY) has fallen below the 100 mark, indicating a loss of strength against other global currencies. A weak dollar makes gold cheaper for investors using other currencies, increasing its demand.

In addition, U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell and his calls for immediate interest rate cuts have led to instability in U.S. financial markets. As a result, the dollar has weakened further, making gold an attractive alternative.

3. Rising Fear of U.S. Recession

According to Goldman Sachs, the probability of a U.S. recession over the next 12 months has risen to 45%. Market concerns are rising due to aggressive trade policies and increasing economic uncertainty.

Investors are pulling out of U.S. Treasuries, previously considered a safe asset, and are shifting towards gold. As bond yields climb and their reliability drops, gold continues to emerge as the more secure option, thereby pushing up its price.

4. Surge in ETF Inflows

Investors are not just buying physical gold. The surge in gold Exchange Traded Funds (ETFs) highlights growing retail and institutional interest. Data from ICRA Analytics shows ETF inflows nearly doubled year-on-year to Rs.1,979.84 crore in February 2025 from Rs.997.21 crore a year ago.

ETFs offer advantages such as liquidity, transparency, and lower cost compared to physical gold. This makes them especially attractive during volatile market periods, leading to a significant impact on gold demand and prices.

5. Central Bank Gold Purchases

Central banks across the world, particularly in Asia, have ramped up their gold reserves. According to the World Gold Council (WGC), net central bank purchases reached 1,037 tonnes in 2024. This marks the third consecutive year of substantial accumulation.

Such a trend indicates a shift away from dollar dependency and a move toward financial resilience. Nations are hedging against economic instability, currency devaluation, and external shocks by turning to gold, which further supports its price.

What Analysts Say?

Experts believe that as long as COMEX gold remains above $3,250 per ounce and MCX gold stays above Rs.91,000 per 10 grams, the uptrend is expected to continue. According to Jateen Trivedi of LKP Securities, dips towards Rs.93,000 may present good buying opportunities. However, traders should remain cautious as volatility is still high.

Manav Modi from Motilal Oswal Financial Services observed that gold has already risen more than 20% in just four months of 2025. He believes the momentum could push prices towards $3,700 in the long term, with a domestic target range of Rs.96,500 to Rs.1,06,000.

Akshaya Tritiya Effect

The timing of this price milestone is also crucial. Akshaya Tritiya, an important festival in India for buying gold, is just around the corner. Traditionally, gold purchases spike during this period as it is considered auspicious.

Retail demand in anticipation of Akshaya Tritiya has further bolstered prices. Jewellers are witnessing increased footfall and advance bookings, adding short-term momentum to an already bullish market.

Impact on Indian Households

The crossing of the Rs.1 lakh mark is significant not just for traders but also for households. Many families view gold as a traditional investment. Uday Kotak recently called Indian housewives the “smartest fund managers”, acknowledging their instinct to buy gold during lows and hold for long-term gains.

However, the rising prices may affect short-term affordability, potentially shifting interest toward digital gold or ETFs, which offer lower entry points.

What's Next?

Going forward, market watchers will closely monitor comments from U.S. Federal Reserve officials. Their stance on inflation and interest rates will play a key role in determining the next phase of gold's trajectory.

Additionally, the geopolitical climate, dollar movement, central bank strategies, and investor sentiment will continue to influence gold's value. With the current momentum and supportive fundamentals, gold price crosses Rs.1 lakh could very well be the beginning of a longer rally.

Conclusion

The unprecedented rise in gold prices, touching the Rs.1 lakh mark, is a reflection of a complex global economic environment. From geopolitical tensions to weakening currencies and growing fears of recession, every factor seems to be contributing to gold’s bullish trend.

As the gold price hits Rs.1 lakh mark, it is evident that this precious metal continues to be the ultimate safe haven for investors. Whether you are a seasoned investor or a cautious household buyer, the current trend emphasizes gold's enduring value and resilience in turbulent times.

FAQs

Q1. What are the primary global and domestic factors that have contributed to gold prices reaching an all-time high of Rs.1 lakh per 10 grams in India?

Ans. The surge in gold prices is driven by a combination of global and domestic factors. Globally, ongoing geopolitical instability and concerns about a potential economic slowdown are increasing demand for safe-haven assets like gold. Cautious or contractionary monetary policies by central banks worldwide also elevate gold's appeal as a hedge against currency devaluation. Domestically, the steady depreciation of the Indian rupee increases the import cost of gold. Additionally, persistent inflationary trends within the Indian economy enhance gold's attractiveness as a store of value.

Q2. How is the record-breaking gold price affecting investment strategies, and what shifts are being observed in the financial market's response to this rally?

Ans. The gold price rally is prompting a shift in investment strategies, with traditional investors and institutions increasing their exposure to gold through physical purchases and financial instruments like ETFs and sovereign gold bonds. Market analysts anticipate gold will play a more significant role in risk management frameworks. Furthermore, there's a parallel increase in demand for gold loans due to higher collateral values, leading financial institutions to re-evaluate loan-to-value ratios and collateral management policies. Investment advisors are also revising asset allocation models to include more inflation-hedging components.

Q3. In what ways is the high gold price influencing consumer behavior and retail trends in India, particularly concerning jewelry demand?

Ans. While institutional demand is strong, high gold prices have tempered retail consumption. Jewelry demand has seen a decline in volume, even during traditional peak seasons. Consumers are showing a preference for lighter jewelry, gold coins, and digital forms of ownership. Retailers are adapting by introducing innovative purchasing schemes like installment plans and promotional offers to maintain consumer interest despite the pricing pressures.

Q4. What are the potential implications of soaring gold prices for India's trade and fiscal policy, and what regulatory responses might be considered?

Ans. High gold prices could lead to increased gold imports, potentially widening India's current account deficit. Policymakers and the Reserve Bank of India might consider adjusting import duties or revisiting gold monetization schemes to manage the impact on foreign reserves. Additionally, compliance frameworks like KYC and GST policies may be re-examined to address the increased value and volume of transactions in the bullion market.

Q5. Given the current economic climate and geopolitical landscape, what is the outlook for gold prices in the medium term, and what strategic advice is being given to investors and policymakers?

Ans. The future trajectory of gold prices will depend on ongoing geopolitical developments, interest rate adjustments by global central banks, and domestic economic indicators. If current trends persist, gold is likely to remain a preferred asset for wealth preservation and portfolio stability. Investors and financial professionals are advised to adopt a balanced strategy, utilizing gold for its hedging properties while staying informed about broader macroeconomic trends. For regulators and policymakers, the focus will be on implementing adaptive responses that ensure market stability without hindering investor freedom.