Gold Nears ₹1 Lakh Mark as Safe-Haven Demand Soars Amid Global Uncertainty
Mumbai: Gold prices in India inched closer to the psychological ₹1 lakh mark per 10 grams on Monday, driven by a weak US dollar, global trade tensions, and increased investor demand for safe-haven assets. According to the All India Sarafa Association, 24-karat gold (99.9% purity) surged by ₹1,650 to reach ₹99,800 per 10 grams in the national capital. This marks a dramatic rise from Friday’s close of ₹98,150.
Similarly, gold of 99.5% purity jumped ₹1,600 to hit a new high of ₹99,300 per 10 grams, up from ₹97,700 in the previous session.
So far in 2025, gold prices have skyrocketed by ₹20,850 per 10 grams—a 26.41% gain since December 31, 2024.
Silver Joins the Rally
Silver prices also witnessed strong upward momentum, climbing ₹500 to ₹98,500 per kilogram. The white metal had remained flat at ₹98,000 per kg on Friday.
Global Drivers Fuel Rally
Experts attribute the bullish trend to a mix of global economic uncertainty, trade conflicts, and a weakening dollar. “This year, gold and silver prices have experienced significant movements due to ongoing trade tensions, rate cut expectations, geopolitical uncertainties, and weakening dollar,” said Satish Dondapati, Fund Manager at Kotak Mahindra AMC. “Gold has soared over 25 per cent, including a 6 per cent gain since the April 2 US tariff announcement.”
On the Multi Commodity Exchange (MCX), gold futures for June delivery spiked ₹1,621, or 1.7%, to a record ₹96,875 per 10 grams.
Globally, spot gold touched an all-time high of $3,397.18 per ounce before slightly easing to $3,393.49. Gold futures also breached the historic $3,400-mark for the first time, rallying $80 or 2.4% amid increased ETF inflows and rising demand.
Key Factors at Play
“Gold prices continued their positive momentum and briefly rose above $3,400 per ounce, as trade tariff-related uncertainty, weakness in the US dollar, and rising Treasury yields continue to support bullion,” said Pranav Mer, Vice President, Commodity & Currency Research at JM Financial Services.
Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, added that the rally gained momentum after the US dollar fell to a new three-year low. “Safe-haven buying intensified following President Trump’s threat to fire Federal Reserve Chair Jerome Powell,” she said.
Spot silver also gained nearly 1% in Asian trading, hitting $32.85 per ounce.
Outlook
Chintan Mehta, CEO of Abans Financial Services, noted that market participants are closely watching President Trump’s evolving tariff strategy and its broader impact on the global economy. “Any signals of further easing or prolonged uncertainty could reinforce gold’s appeal and keep safe-haven demand elevated,” Mehta said.
As global tensions persist and festive buying in India picks up pace, bullion may continue its upward march, potentially breaching the ₹1 lakh mark in the coming days.
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