Gold prices cross ₹1 lakh per 10gm for first time
What's the story
Gold prices in India have crossed ₹1 lakh per 10gm for the first time, thanks to a massive rally in global markets.
According to the All India Sarafa Association, 24-karat gold climbed by ₹1,650 to hit ₹99,800 per 10gm in Delhi.
A 3% Goods and Services Tax (GST) takes the prices of physical gold to ₹1,02,794.
Market trends
Gold futures hit new record high
On the Multi Commodity Exchange (MCX), gold futures hit a new all-time high of ₹96,775 per 10gm.
Globally, spot gold hit a record high of $3,473.03/oz.
US gold futures rose 1.7% to $3,482.40/oz amid rising global uncertainty and pressure on an already weak US dollar.
Market impact
Trump's criticism of Fed chair adds to market uncertainty
President Donald Trump's renewed criticism of Federal Reserve Chair Jerome Powell has added to the global market uncertainty.
Trump demanded immediate rate cuts and warned of a potential US economic slowdown, further pressuring the weak dollar and increasing demand for gold.
"Investors have been giving a wide berth to US assets amid tariff worries and Trump-Powell dramas, which has kept gold in prime position to capitalize on the dollar's woes," said Tim Waterer, Chief Market Analyst at KCM Trade.
Market response
Asian stock markets respond to US asset sell-off
Asian stock markets remained volatile after a massive sell-off of US assets.
China accused the US of misusing tariffs and warned other nations against economic agreements that could hurt it.
"Gold prices extended their record-breaking rally as the fresh week kicked off with strong early buying," said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.
Market analysis
Factors supporting gold price rally
According to Trivedi, elements like tariff tensions, US economic concerns, and an impending debt crisis are backing the gold price rally.
Continuous purchases by China, various central banks, and institutional investors have also strengthened this bullish trend.
He added that the uptrend continues to remain intact as long as Comex gold remains above $3,250/oz and MCX above ₹91,000 per 10gm.