24-Carat Gold Crosses Historic Rs 1,00,000 Milestone
Gold prices reached a record high on Tuesday as the price of 24-carat gold reached Rs 1,00,000 per 10 grams for the first time in history.
The price of 24-carat gold jumped sharply from Rs 96,670 to Rs 1,00,000 per 10 grams a whopping increase of Rs 3,300 in just 24 hours, according to the India Bullion and Jewellers Association (IBJA).
Other gold segments also saw a steep rise. The rate of 22-carat gold rose to Rs 97,600 per 10 grams, 20-carat gold rose to Rs 89,000, and 18-carat gold rose to Rs 81,000 per 10 grams.
On the Multi Commodity Exchange (MCX), October futures also touched a record high of Rs 1,00,484 per 10 grams on a futures contract, crossing the Rs 1 lakh barrier briefly, gaining almost Rs 2,000 or 2 percent in a day.
Experts link the short-lived spike to increasing global demand for gold as a safe-haven asset amidst heightened geopolitical and economic uncertainty.
"Much of the new all-time high is being fueled by rising tensions between President Trump and US Fed Chairman Jerome Powell regarding interest rate policies", stated Colin Shah, Kama Jewellery Managing Director.
Investor sentiment has been disrupted by recent events, such as US-imposed tariffs on Chinese imports and controversy surrounding the Federal Reserve's monetary policies. These have fueled market volatility, enhancing the attractiveness of gold.
A declining US dollar and Federal Reserve rate cuts have further boosted the appeal of gold. As an unyielding asset, gold is more attractive when interest rates decline, since the cost of holding it comes down.
Central banks in nations such as India and China have also been gradually raising their gold holdings, a tactic referred to as 'de-dollarisation,' designed to cut reliance on the US dollar and protect their economies from world shocks.
"Although gold prices are trending upwards, the decline of the dollar makes gold relatively cheaper in other currencies, which balances demand and pricing", Shah stated.
