Gold futures breach ₹1 lakh mark, surge 2.1% amid rising safe-haven demand

Gold futures on the Multi Commodity Exchange (MCX) surged for the fourth consecutive session and breached the ₹1 lakh mark on Tuesday, April 22, amid increased safe-haven demand for the yellow metal.

The August delivery contract of the precious metal on the MCX climbed ₹2,048, or 2.1%, to hit a lifetime high of ₹1,00,000 per 10 gram during the mid-session trade on Tuesday. The yellow metal later pared some gains to trade at ₹99,790 per 10 gram, up ₹1,838 or 1.88%.

The October contracts jumped 2.04%, rising by ₹2,016 to hit a fresh peak of ₹1,00,500 per 10 gram on the MCX, while the December delivery contracts climbed to trade at a new high of ₹1,02,275 per 10 gram during the session. Both the contracts pared gains later to trade slightly lower on the MCX on Tuesday.

Meanwhile, the most-traded June contracts hit a record high as well, climbing ₹2,079, or 2.14%, to reach ₹99,358 per 10 gram.

Gold prices in Delhi surpassed the ₹1 lakh mark on Tuesday, jumping by ₹1,800 per 10 gram to nearly ₹1,01,600 per 10 gram (99.9% purity), according to the All India Sarafa Association. On Monday, gold prices settled at ₹99,800 per 10 gram.

In the overseas markets, gold futures jumped $83.76 per ounce, or 2.44%, to reach a record high of $3,509 per ounce. Later, it pulled back to trade at $3,491.25 per ounce, up $65.95, or 1.93%.

Gold's unstoppable rise

Gold prices have been on a bull run, rising by over 25% so far in 2025. Many factors, including global uncertainty, market volatility, rising inflation, weakening dollar, risks of recession, and most importantly, the intensifying trade war between the US and China, are keeping the demand and prices for gold up. Gold, being a safe-haven asset, surges when other investments turn risky due to global dynamics.

As per commodity experts, gold surged on Tuesday on the back of US monetary policy concerns after US President Donald Trump unveiled plans to overhaul the Federal Reserve. On Monday, Trump reiterated his call for the Federal Reserve to cut interest rates, saying the American economy could slow down if the Fed does not cut interest rates immediately.

On Friday last week, White House economic advisor Kevin Hassett said that Trump and his team were determining whether or not they could fire Fed Chair Jerome Powell. This came after Powell said that the central bank was not inclined to introduce interest rate cuts soon due to the possible inflationary pressures and economic uncertainties stemming from the new tariffs.

Gold prices have been highly volatile in the last few sessions amid the uncertainty in the global markets. The dollar index slipped to a new three-year low on Monday after the tussle between Trump and Powell intensified, as per analysts.

Meanwhile, many experts are warning against investing in the yellow metal at the current levels as the rally is seemingly near its peak, which could mean that corrections are around the corner.