Gold prices soared to an all-time high on Tuesday, with the rate of 24-carat gold touching Rs 1,00,000 per 10 grams for the first time ever.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold surged sharply from Rs 96,670 to Rs 1,00,000 per 10 grams — a steep rise of Rs 3,300 within 24 hours.
Other gold categories also witnessed a significant hike. The price of 22-carat gold climbed to Rs 97,600 per 10 grams, 20-carat gold reached Rs 89,000, and 18-carat gold touched Rs 81,000 per 10 grams.
On the Multi Commodity Exchange (MCX), October futures briefly crossed the Rs 1 lakh mark, hitting a record high of Rs 1,00,484 per 10 grams — gaining nearly Rs 2,000 or 2 percent in a single day.
Experts attribute the sudden spike to growing global demand for gold as a safe-haven investment amid rising geopolitical and economic uncertainties.
“The new all-time high is largely driven by mounting tensions between President Trump and US Fed Chair Jerome Powell over interest rate policies,” said Colin Shah, Managing Director of Kama Jewellery.
Investor sentiment has been shaken by recent developments, including US-imposed tariffs on Chinese goods and debates surrounding the Federal Reserve’s monetary policies. These factors have contributed to market volatility, boosting the appeal of gold.
A weakening US dollar and rate cuts by the Federal Reserve have further increased gold’s attractiveness. As a non-yielding asset, gold becomes more desirable when interest rates fall, as the opportunity cost of holding it decreases.
Central banks in countries like India and China have also been steadily increasing their gold reserves, a strategy known as ‘de-dollarisation,’ aimed at reducing dependency on the US dollar and insulating their economies from global shocks.
“While gold prices are on an upward trend, the fall of the dollar makes gold relatively more affordable in other currencies, helping balance demand and pricing,” Shah said.
—IANS
