Gold Surges to Record Rs1 Lakh as Investors Seek Safe Haven amid Global Jitters

Moneylife Digital Team 22 April 2025

Investor Interest

Gold prices surged to a historic high on Tuesday, breaching the Rs100,000 per 10gm mark for the first time, as investors sought refuge in safe-haven assets amid escalating global economic uncertainty and policy tensions initiated by the US. Domestically, seasonal factors may also be contributing to demand. With Akshaya Tritiya and other festivals on the horizon, Indian buyers have been active in the market, despite the steep prices.

On the Multi Commodity Exchange (MCX), the August futures contract soared by Rs2,048, or 2.1%, reaching an unprecedented Rs100,000 per 10gm during mid-session trade. Although prices later eased slightly, the precious metal was still trading at Rs99,790, up Rs1,838 or 1.88%, with an open interest of 2,492 lots.

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold jumped by Rs3,300 in just 24 hours — from Rs96,670 to Rs100,000 per 10gm. Prices across other purity categories also saw sharp gains, with 22-carat gold rising to Rs97,600, 20-carat to Rs89,000, and 18-carat to Rs81,000 per 10gm.

October gold futures on MCX mirrored the rally, briefly crossing the Rs1 lakh threshold and touching an all-time high of Rs100,484 per 10gm, gaining nearly Rs2,000 in a single day.

Analysts attribute the sustained rally in gold to heightened geopolitical tensions, particularly following US president Donald Trump's recent remarks indicating a shake-up at the Federal Reserve (Fed). His comments about the US Fed’s current interest rate policies and ongoing tariffs on Chinese goods have further fuelled investor anxiety.

The weakening US dollar and lower interest rates, which reduce the opportunity cost of holding gold, have made the yellow metal more attractive to global investors. Central banks in major economies, including India and China, have also ramped up gold purchases in recent months as part of a broader strategy of ‘de-dollarisation’, aimed at reducing dependence on the greenback amid global uncertainty.

Given the prevailing economic and geopolitical backdrop, market experts anticipate that gold prices will continue to remain firm in the short to medium term, as investors prioritise safety over returns.

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