Gold prices surged further in global markets on Monday, pushing the yellow metal’s value to unprecedented levels in India as well. The international spot price of gold rose to $3,453.95 per ounce, continuing its upward momentum amid a persistent flight to safety and expectations of monetary easing by the U.S. Federal Reserve.
The rally in gold was attributed to:
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Growing geopolitical tensions and economic uncertainty, which has led investors to flock toward safe-haven assets,
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A weaker U.S. dollar and anticipated interest rate cuts from major central banks,
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Sustained central bank gold purchases, especially from countries like China, Russia, and India,
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Elevated concerns over stagflation, as inflation remains sticky while growth slows globally.
Gold crosses ₹1 lakh mark in India
With the USD-INR exchange rate at ₹85.22 per dollar, the price of gold in Indian terms has also hit a historic high. When converted to grams, one troy ounce (28.3495 grams) of gold priced at $3,453.95 translates to: ₹1,03,827.45 for 10 grams of gold
This marks the first time gold has crossed ₹1 lakh per 10 grams in the Indian market, reflecting the combined effect of rising global prices and a weaker rupee.
Domestic jewelers and bullion traders are witnessing strong interest from both retail investors and institutions, although physical demand may soften due to high price sensitivity among consumers, especially in rural India.
Analysts suggest that if macroeconomic uncertainties persist and the U.S. Federal Reserve proceeds with rate cuts in 2025, gold could continue its upward trajectory. However, some also caution that volatility may rise in the short term due to profit booking and speculative activity.
Disclaimer: The above article is for informational purposes only. Please consult with certified financial advisors before making any investment decisions in precious metals.
Data as on live rate. Timestamp: 7:59AM IST, April 22, 2025
