Gold Price Crosses ₹1 Lakh Mark as Global Prices Hit Record Highs Amid Trade War & Fed Uncertainty

On Tuesday, 22nd April 2025, gold prices reached unprecedented levels in both retail and futures markets in India. In retail markets, gold hit the psychological milestone of ₹1 lakh per 10 grams including GST. Simultaneously, Gold June futures on the MCX (Multi Commodity Exchange) surged to a new all-time high of ₹99,178 per 10 grams, marking an increase of nearly ₹1,900 from the previous day's close. The August delivery contract on the MCX even reached ₹1,00,000 per 10 grams during mid-session trading.

International Market Performance

The surge in domestic gold prices was mirrored in international markets, where gold surpassed $3,400 per troy ounce for the first time on Monday. Later, international gold futures reached a record high of USD 3,509.06 per ounce. This global increase subsequently saw a slight retreat to USD 3,491.25 per ounce, still representing a significant gain.

Factors Driving the Price Rally

Several factors contributed to this significant rise in gold prices. Uncertainty in global financial markets and an escalating US-China trade war were key drivers, increasing the safe-haven appeal of precious metals. Additionally, instability in the U.S. dollar, which slipped to 3-year lows following disagreements between the U.S. President and the Federal Reserve Chairman over interest rate cuts, further boosted gold. Investors sought safe-haven assets in response to these global economic and political uncertainties.

Impact of GST and Physical Market Prices

In the physical market, excluding the 3% Goods and Services Tax (GST), the price of gold was trading at ₹97,200 per 10 grams on Monday. However, including GST, gold prices exceeded the ₹1 lakh mark at the retail level. The sources also provide specific gold rates for different Indian cities on Monday, 22nd April 2025, for both standard (22 carat) and pure gold (24 carat) per 8 grams. These rates were: Delhi (₹57,184 and ₹60,984), Mumbai (₹57,496 and ₹61,264), Chennai (₹56,912 and ₹60,632), and Hyderabad (₹56,896 and ₹60,640) respectively.

Also Read : Indian Rupee Opens Flat at ₹85.13 After Five-Day Rally

Silver Market Overview

Alongside gold, silver May futures contracts on the MCX also opened higher by 0.33% or ₹315, at ₹95,562/kg. In the previous trading session, silver futures had settled with a gain of 0.22%. 

US Monetary Policy and Political Influence

President Trump's renewed appeals for Federal Reserve interest rate reductions and his team's discussions about potentially dismissing Fed Chair Jerome Powell contributed to market uncertainty. Fed Chair Jerome Powell's previous indications of reluctance towards near-term rate cuts due to inflation concerns and tariff-related economic uncertainties also played a role. These factors concerning US monetary policy further fueled the safe-haven demand for gold.

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