Gold rate today: Gold prices cross Rs 1 lakh in physical market; yellow metal futures hit record high of Rs 1,00,000 per 10 grams

Gold price today: Heightened safe-haven demand for gold resulted from the US-China trade tensions. (AI image)

Gold rate today: Gold futures maintained their upward momentum for the fourth consecutive session, reaching a new record high of Rs 1,00,000 per 10 grams. This surge occurred as investors sought safe-haven assets following US President Donald Trump’s announcement regarding Federal Reserve reforms amidst ongoing global trade tensions.
The August delivery contract on the Multi Commodity Exchange (MCX) increased by Rs 2,048 or 2.1 per cent, achieving this unprecedented level during mid-session trading.
The precious metal subsequently traded at Rs 99,790 per 10 grams, showing an increase of Rs 1,838 or 1.88 per cent, with 2,492 lots of open interest. The October contract also achieved a milestone, rising by Rs 2,016 or 2.04 per cent to reach Rs 1,00,500 per 10 grams on the MCX.
The June contract, which saw the highest trading volume, rose by Rs 2,079 or 2.14 per cent to achieve Rs 99,358 per 10 grams. Market analysts attributed this increase to uncertainties regarding US monetary policy, following President Donald Trump’s proposed Federal Reserve reforms.
HDFC Securities’ Senior Research Analyst (Commodities) Saumil Gandhi noted that gold prices stood at Rs 3,200 per 10 grams in 1990, rising to Rs 77,913 per 10 grams by the end of 2024. He highlighted that the 34-year CAGR return calculated to approximately 9.80 per cent, whilst the period from early 2025 to April 21 yielded approximately 26.20 per cent returns.
The precious metal prices achieved consecutive record highs in both the previous and current year, driven by substantial inflows into exchange-traded funds. This surge occurred as potential widespread economic disruption from trade tensions heightened safe-haven demand, alongside significant central bank acquisitions, strong Asian demand, and Federal Reserve’s monetary easing measures.
Gold futures in international markets surged by USD 83.76 per ounce or 2.44 per cent, reaching a record high of USD 3,509.06 per ounce. Subsequently, it retreated to USD 3,491.25 per ounce, representing an increase of USD 65.95 or 1.93 per cent.
“Gold prices crossed USD 3,500 per ounce levels in the international markets for the first time and also crossed 97,000 levels in the domestic markets amid uncertainty in the global financial markets and escalating US-China trade war continue to support prices of precious metals,” Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.
On Monday, Trump renewed his appeal for Federal Reserve interest rate reductions, warning of potential American economic deceleration without immediate rate cuts.
Amidst global market uncertainty, gold exhibited significant price volatility. The dollar index declined to three-year lows following disagreements between US President Trump and Federal Reserve Chair Jerome Powell regarding interest rate reductions, according to Kalantri.
On Friday, White House economic advisor Kevin Hassett indicated ongoing discussions within Trump’s team regarding the possibility of dismissing Fed Chair Jerome Powell.
The previous week, Fed Chair Jerome Powell indicated the central bank’s reluctance to implement near-term interest rate reductions, citing potential inflationary pressures and economic uncertainties related to new tariffs.