Gold prices at historic level, hit ₹1 lakh/10 gm amid weak dollar, tariff war

Gold prices skyrocketed on Monday, April 21, with physical gold rates in India surpassing the ₹1 lakh mark for the first time. 

Creating history, gold futures for June delivery on the Multi Commodity Exchange (MCX) climbed to over ₹97,000 per 10 gm. Combined with a 3% Goods and Services Tax (GST) on the yellow metal, physical gold prices jumped above ₹1,00,100 during the session. Gold rates have increased over 26%, or over ₹20,800 per 10 gm, so far in 2025. 

At around 6:45 pm on Monday, MCX gold rates climbed to ₹97,200 per 10 gm, up ₹1,946, or 2.04%, compared to the previous close on Thursday. 

Bullion markets remained closed on Friday, April 18 for the occasion of Good Friday. 

Gold rates in Delhi jumped ₹1,650 to ₹99,800 per 10 gm (99.9% purity) on Monday after settling at ₹98,150 on Friday, according to the All India Sarafa Association. 

In the overseas markets, spot gold prices touched a fresh peak of $3,397.18 per ounce during the trading session on Monday, later settling at $3,393.49 an ounce. Gold futures globally breached the $3,400 mark for the first time too, climbing $80 per ounce, or 2.4%. 

Silver prices in the domestic market also rose on Monday, up ₹500 to ₹98,500 per kg. Spot silver prices during Asian market hours jumped 1% to $32.85 per ounce. 

Gold’s seemingly never-ending bling

Gold prices have been on a bull run in domestic and international markets amid an escalating US-China trade war and a weakening dollar. The US dollar fell to a three-year low on Monday, fuelling the yellow metal’s safe-haven demand.

As gold is a safe haven, it rises when other investments turn risky due to volatility. In the current situation, markets are volatile and inflation is on the rise. Fears of stagnation and risks of recession are keeping market participants anxious, along with the intensifying tensions between the two superpowers, the US and China. While the US has imposed a total of 245% tariffs on China, retaliatory tariffs and measures from Beijing are keeping the possibility of a full-blown trade war between the two fully alive. 

Additionally, the upcoming festive demand for gold in India, along with rising interest in gold ETFs among investors, is boosting the rise of the precious metal even more. 

According to commodity experts, investors will closely monitor how US President Donald Trump’s tariff strategy unravels, along with Federal Open Market Committee (FOMC) commentary to take hints on the possibility of upcoming interest rate cuts, to map the trajectory of gold. Further uncertainty in the markets could fuel gold’s safe-haven demand—and thus its prices—further in the near future.