Rising demand and global uncertainty push the yellow metal to Rs 1 lakh mark
The timeless charm of the yellow metal never wanes. Of late, gold is making new highs in its price graph. Gold prices in India have been on a relentless upward trajectory, inching closer to the Rs 1,00,000 per 10-gram milestone. The rise in gold prices may be good news for the people who have the gold or gold bonds — but it is not a good omen for the economy. Gold prices typically rise when real estate and stock markets have negative sentiment and there is upheaval in the political sphere. The surge comes amid a confluence of global and domestic factors — ranging from heightened geopolitical tensions and stock market volatility to seasonal festive demand and central bank buying.
In 2025, gold has gained over $400 globally, hitting a record high of $3,167.57 per ounce on 3 April in the US. This international momentum is reflecting in Indian markets, where the Multi Commodity Exchange (MCX) recently saw gold touching Rs 90,853 during intraday trade and the trajectory remains firmly upward. On Sunday the gold prices stood at Rs 96,500 per 10g.
One of the key drivers behind this rally is the growing demand for gold as a safe-haven asset. Escalating tensions between the United States and China have created significant ripples across global markets. In a recent move, US President Donald Trump raised tariffs on Chinese imports to 125 per cent — up from 104 per cent — sparking fears of a prolonged trade conflict. Although he announced a 90-day pause on higher tariffs for other countries, the uncertainty surrounding US–China trade relations has already prompted investors to exit riskier assets like equities and seek refuge in gold.
This global unrest is being mirrored in Indian investor and consumer sentiment. The domestic stock markets have shown signs of volatility, with concerns over inflation and slowing economic growth causing anxiety. As a result, there has been a marked shift from equities and industrial commodities to gold — which is widely regarded as a reliable hedge during periods of turmoil.
Further fuelling the rise in gold prices is robust buying by global central banks. As part of a broader strategy to diversify reserves and reduce dependency on the US dollar, central banks have significantly ramped up their gold purchases. This institutional demand adds further weight to the bullish trend in gold prices.
In India, traditional factors are also playing a role. The festive and wedding season typically sees heightened consumer demand for gold jewellery, coins, and bars. Akshaya Tritiya, in particular, is known for being an auspicious time to buy gold — and this cultural sentiment continues to support domestic consumption even as prices soar.
Additionally, the depreciation of the Indian rupee against the US dollar has made imported gold more expensive — further pushing up retail prices. With many Indian households viewing gold not just as a luxury, but as a secure long-term investment, this hasn’t significantly dampened demand. Even on days when the markets are closed for holidays — as they were on 10 April for Mahavir Jayanti — investors have continued to keep a close eye on global movements.
Looking ahead, the big question is not whether gold in India will breach the Rs 1,00,000 mark but when it will do so. Given the persistent geopolitical tensions, steady central bank accumulation, and firm domestic demand, many analysts believe it’s only a matter of time. Unless there is a major resolution to the US–China trade standoff or a sharp correction in inflation expectations, gold’s appeal as a safe-haven asset is likely to keep it on a bullish course.
