Gold prices in India surge past ₹1 lakh for first time

Gold prices in India have crossed ₹1 lakh for 10 grams for the first time. In Mumbai, the price of 22-carat gold was Rs 1,00,000 per 10 grams and Rs 91,600 per 10 grams. The biggest reason for this is believed to be President Trump's plan to change the Federal Reserve in the US and the decline of the dollar. In the international market, gold prices have reached above $ 3400 an ounce. Due to the weakening of the dollar, gold has become cheaper for foreign investors, which has seen an increase in demand.

The international situation and the impact of Trump's policy

US President Trump's criticism of Federal Reserve Chair Jerome Powell and his displeasure over not reducing interest rates have caused a stir in the markets. Trump's rhetoric has raised questions about the Fed's independence. This has pushed the dollar to a three-year low, and investors have turned to gold as a safe haven. The Russia-Ukraine conflict, tensions with China, and global inflation concerns have also given a strong support to gold.

Why is gold special in India?

India is the second largest gold consuming country in the world. In 2024, India recorded a demand of 802.8 tonnes of gold, compared to 761 tonnes in 2023. Gold is also given great importance culturally in India. In marriage, festival or financial needs, people take loans by pledging jewelry. Now, with the help of digital platforms and fintech apps, gold loans have become easier even in villages, which has increased its popularity.

Gold is the most reliable in inflation and uncertainty

When there is an economic crisis or inflation, people consider gold as the safest asset. This is the reason that as inflation and the dollar fall, the shine of gold increases. In the coming days, its prices may remain high.