Gold Prices in India: Hit Historic ₹1 Lakh Mark Amid Global Economic Jitters

In an unprecedented surge, gold prices in India have soared past the ₹1 lakh mark per 10 grams, making headlines across the financial world. This historic milestone reflects growing investor anxiety amid global economic uncertainty, monetary policy shifts in the US, and rising geopolitical tensions.

MCX Records All-Time Highs

On the Multi Commodity Exchange (MCX), gold prices skyrocketed in early trade, with the June delivery contract jumping by ₹1,899 (1.96%) to touch a new peak of ₹99,178 per 10 grams. The momentum continued as the August contract hit ₹99,800, while the October contract became the first ever to breach the ₹1 lakh mark, reaching ₹1,00,484 per 10 grams—a gain of ₹2,000 or 2%.

This bullish trend indicates a robust appetite for gold as a safe haven asset, with open interest in June contracts standing strong at 22,687 lots.

City-Wise Gold Rates in India

According to Goodreturns.com, 24-carat gold has now breached the ₹10,000 per gram threshold in major Indian cities:

• Delhi: ₹10,150 per gram
• Mumbai, Noida, Gurugram, Kolkata: ₹10,135 per gram
• Chennai, Bengaluru: Close behind at similar levels

Meanwhile, 22-carat gold—commonly used for jewellery—trades slightly lower:

• Delhi: ₹9,305 per gram
• Mumbai & Kolkata: ₹9,290 per gram

Global Gold Prices at Record High

The global spot price of gold also saw a dramatic spike, with gold futures hitting $3,504.12 per ounce, before easing slightly to $3,490.72 per ounce, still marking a strong gain of $65.42 or 1.91%.

Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd., stated:

“Gold prices have crossed $3,500 per ounce internationally for the first time. In India, they’ve surpassed ₹97,000 due to mounting uncertainty in global financial markets and escalating tensions in the US-China trade war.”

What’s Fueling the Gold Rally?

A key driver behind the spike is uncertainty surrounding the US Federal Reserve’s monetary policy. Recently, President Donald Trump unveiled aggressive plans to restructure the Fed, fueling speculation and volatility.

Trump reiterated calls for immediate interest rate cuts, warning that the American economy could falter if the Fed fails to act swiftly. This comes amid reports that the White House is exploring legal grounds to fire Fed Chair Jerome Powell, creating further unrest in global markets.

Last week, Powell stood firm, indicating that rate cuts aren’t on the table due to potential inflationary risks tied to new tariffs and economic unpredictability.

Adding fuel to the fire, the US Dollar Index slipped to a 3-year low, signaling weakening investor confidence in the American economy and increasing appeal for gold.

Conclusion

The dramatic surge in gold prices is a direct reflection of growing global instability. With no clear resolution in sight for US-China trade tensions, a looming Fed-White House clash, and shaky investor sentiment, gold may continue its upward march.

For Indian investors and jewellers, this sharp rally presents both opportunity and caution. While returns appear attractive, the market remains volatile and closely tied to geopolitical developments.

Stay tuned for daily gold rate updates and expert insights.