Gold hits Rs 1 lakh per 10 grams for the first time

Gold future prices sustained upward trend for the fourth straight session by surging Rs 2,048 to hit a fresh record high of Rs 1,00,000 per 10 grams as investors rushed to safe havens after US President Donald Trump indicated plans to overhaul Federal Reserve amid continuing global trade war jitters. On the Multi Commodity Exchange (MCX), the August delivery contract of the yellow metal bounced by Rs 2,048 or 2.1 per cent to hit a fresh peak of Rs 1,00,000 per 10 grams in the mid-session trade. Later, the precious metal trade at Rs 99,790 per 10 grams, up by Rs 1,838 or 1.88 per cent, with an open interest of 2,492 lots.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold surged sharply from Rs 96,670 to Rs 1,00,000 per 10 grams — a steep rise of Rs 3,300 within 24 hours. Other gold categories also witnessed a significant hike. The price of 22-carat gold climbed to Rs 97,600 per 10 grams, 20-carat gold reached Rs 89,000, and 18-carat gold touched Rs 81,000 per 10 grams. On the Multi Commodity Exchange (MCX), October futures briefly crossed the Rs 1 lakh mark, hitting a record high of Rs 1,00,484 per 10 grams — gaining nearly Rs 2,000 or 2 percent in a single day.
Investor sentiment has been shaken by recent developments, including US-imposed tariffs on Chinese goods and debates surrounding the Federal Reserve’s monetary policies. These factors have contributed to market volatility, boosting the appeal of gold. A weakening US dollar and rate cuts by the Federal Reserve have further increased gold’s attractiveness. As a non-yielding asset, gold becomes more desirable when interest rates fall, as the opportunity cost of holding it decreases.While gold prices are on an upward trend, the fall of the dollar makes gold relatively more affordable in other currencies, helping balance demand and pricing,” said experts.
Central banks in countries like India and China have also been steadily increasing their gold reserves, a strategy known as ‘de-dollarisation,’ aimed at reducing dependency on the US dollar and insulating their economies from global shocks.

(Business Correpondent)