365Telugu.com online news,New Delhi, April 22, 2025: In a record-breaking development, gold prices touched the Rs 1 lakh mark for the first time ever in India on Tuesday. The rate for 24-carat gold surged to ₹1,00,000 per 10 grams, as per data from the India Bullion and Jewellers Association (IBJA). This marks a sharp single-day rise of ₹3,300 from the previous rate of ₹96,670.
Other gold variants also saw significant hikes:
- 22-carat gold rose to ₹97,600 per 10 grams
- 20-carat gold reached ₹89,000
- 18-carat gold climbed to ₹81,000
On the Multi Commodity Exchange (MCX), October futures of gold briefly surpassed the ₹1 lakh threshold, reaching an all-time high of ₹1,00,484 per 10 grams — a nearly ₹2,000 or 2% gain in a single day.
Reasons Behind the Rally
The sharp increase in gold prices is being attributed to heightened global demand, especially amid rising geopolitical tensions and economic uncertainty. Colin Shah, Managing Director of Kama Jewellery, pointed out that the surge is largely driven by market volatility sparked by conflicts between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell over interest rate policies.
“The ongoing friction, including tariff impositions and questions around Fed decisions, is pushing investors toward safer assets like gold,” said Shah.
A weakening U.S. dollar and a global trend toward lower interest rates have further fueled the demand for gold. With interest rates falling, the opportunity cost of holding non-yielding assets like gold drops, making it a more attractive investment.
Rise in Central Bank Gold Reserves
Another major factor contributing to the rally is increased gold accumulation by central banks, including those in India and China. This movement-part of a broader strategy known as de-dollarisation-aims to reduce reliance on the U.S. dollar amid global uncertainties.
Colin Shah noted that despite the rising prices, the weaker dollar is making gold relatively more affordable in other currencies, keeping global demand stable.
Domestic Factors in Play
In India, the festive season-particularly Akshaya Tritiya-typically sees a spike in demand for gold. This seasonal trend has added to the domestic price momentum, analysts observed.
With multiple global and local factors influencing the market, experts predict that gold prices may stay elevated in the coming weeks.