Gold Breaches Rs 1 Lakh Mark For First Time Amid Global Jitters, Trump’s Fed Overhaul Sparks Rush To Safe-Haven Assets

In a milestone moment for India’s bullion market, gold prices surged past the Rs 1 lakh mark per 10 grams for the first time, driven by global economic anxiety, a weakening US dollar, and US President Donald Trump’s plans to overhaul the Federal Reserve.

Indian Express reported that on Tuesday (22 April), 24-karat gold (999 fineness) stood at Rs 1,00,000 per 10 grams in Mumbai, while 22-karat gold stood at Rs 91,600.

The dramatic rise comes as international gold prices crossed $3,486 per troy ounce, consolidating the metal’s standing as a go-to safe haven amid global turmoil.

The rally is being powered by uncertainty over US monetary policy, following Trump’s repeated attacks on Fed Chairman Jerome Powell and his threats to sack him.

“These are stoking concerns about the independence of the Fed, sending ripples through financial markets. US Dollar (three-year low) and the risk-on equity markets takes a beating while gold stands to benefit,” said N S Ramaswamy, Head of Commodities at Ventura.

Gold has soared nearly 59 per cent since March 2024. A weaker dollar typically drives up gold demand by making it cheaper for investors holding other currencies. The ICE US Dollar Index dropped to 97.92 on Monday, its lowest since 2022.

“The rally is being supported by escalating tariff tensions, concerns over the US economic outlook and the looming US debt crisis. Continued buying from China, global central banks and institutional investors has added momentum to the bullish sentiment,” said Jateen Trivedi, analyst at LKP Securities.

The World Gold Council (WGC) reported that India which is home to the world’s second-largest gold market after China, saw demand rise to 802.8 tonnes in 2024, up from 761 tonnes in 2023, with total value increasing 31 per cent to Rs 5.15 lakh crore.

Gold's deep cultural relevance in India adds further weight to its economic significance. Analysts say many Indians are turning to gold loans amid financial strain.

“During periods of economic uncertainty like trade wars or inflation, gold is perceived as a stable asset,” an analyst noted. The rise of digital platforms has further fuelled this trend, making gold-backed finance more accessible even in rural areas.

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