Gold prices in India have soared to an all-time high, surpassing the Rs 1 lakh per 10 gm mark for the first time. This surge follows a sharp rise in international gold prices due to growing economic uncertainty and US President Donald Trump’s plans to overhaul the Federal Reserve.
Current Gold Prices in India (24K & 22K)
- 24-karat gold (999 purity): Rs 1,00,000 per 10 gm
- 22-karat gold: Rs 91,600 per 10 gm
The bullish trend in gold highlights its status as the ultimate safe-haven asset amid volatile global markets.
Why Are Gold Prices Rising?
1. Trump’s Fed Overhaul & Inflation Fears
Global gold prices have surged past $3,486 per troy ounce as Trump’s proposed changes to the US Federal Reserve raise concerns about future monetary policy. His criticism of Fed Chair Jerome Powell for not cutting interest rates has added to market jitters, weakening the US dollar and boosting gold demand.
2. Weaker US Dollar & Strong Global Demand
A falling US dollar makes gold more affordable for foreign investors, driving up demand. Gold has gained 59% since March 2024, fueled by:
- Central bank buying (especially from China)
- Institutional investor demand
- Hedge against inflation
3. Geopolitical Tensions & Economic Risks
Escalating US-China tariff tensions, the Russia-Ukraine conflict, and fears of a US debt crisis have further strengthened gold’s appeal as a safe-haven asset.
4. Fed’s Warning on Tariffs & Inflation
The US Federal Reserve has warned that tariffs could disrupt price stability and employment, reinforcing gold’s role as a hedge against economic instability.
Expert Insight
Jateen Trivedi, Research Analyst at LKP Securities, states:
“The gold rally is driven by trade tensions, US economic uncertainty, and strong buying from central banks. Institutional investors are also fueling the bullish momentum.”
What’s Next for Gold Prices?
With ongoing geopolitical risks and monetary policy uncertainty, gold is expected to remain a top-performing asset in 2024. Investors are closely watching:
- Fed’s interest rate decisions
- Global inflation trends
- Geopolitical developments
