Gold Prices Reach Record High, Crossing Rs 1 Lakh per 10 Grams in India

Gold prices have surged to a record high, crossing Rs 1 lakh per 10 grams in India. This significant milestone is driven by global uncertainties, including the US-China trade war and disagreements between the US President and Fed Chairman regarding interest rate reductions.

Current Gold Prices
The current gold prices in India are as follows:

• 24-carat gold: Rs 10,150 per gram in Delhi, Rs 10,135 per gram in Mumbai, Kolkata, Chennai, and Bengaluru.
• 22-carat gold: Rs 9,305 per gram in Delhi, Rs 9,290 per gram in Mumbai and Kolkata.

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Factors Contributing to the Price Hike
Several factors have contributed to the surge in gold prices, including:

• Global Market Uncertainty: The US-China trade war and tariff tensions have led to a rally in safer assets like gold. As investors seek safe-haven assets, gold prices have surged.
• Weakening US Dollar: The dollar index dropped to 3-year lows, enhancing gold’s appeal as a safe-haven asset. A weaker dollar makes gold more attractive to investors, driving up prices.
• Central Bank Buying: Sustained buying by central banks and institutional investors is pushing the rally forward. Central banks have been consistently buying gold, adding to the demand and driving up prices.

Impact on the Jewellery Industry
Despite the record-high prices, the jewellery industry remains optimistic. There’s increasing traction in natural diamond jewellery and coloured gemstone pieces. Gold coins and bars are seeing steady demand as consumers turn to gold for long-term security.

Market Trends
The market trends indicate a continued surge in gold prices, with:

• MCX Gold: Reaching a record high of Rs 99,178 per 10 grams, rising Rs 1,900 after crossing the Rs 1 lakh threshold.
• Silver Prices: Rose but retreated from daily highs due to profit-taking in industrial metals.

Conclusion
The surge in gold prices to a record high, crossing Rs 1 lakh per 10 grams in India, is driven by global uncertainties and a weakening US dollar. While the jewellery industry remains optimistic, the market trends indicate a continued surge in gold prices. As investors seek safe-haven assets, gold prices are likely to remain high, driven by sustained buying by central banks and institutional investors.