Gold prices in India soared to unprecedented levels on Tuesday, with 24-carat gold breaching the $1,200 per 10-gram mark for the very first time. According to the India Bullion and Jewellers Association (IBJA), the price surged by nearly $40 in just 24 hours, jumping from roughly $1,160 to $1,200 per 10 grams.
Other purities of gold followed the same trend. Rates for 22-carat gold reached $1,170, 20-carat climbed to $1,065, and 18-carat gold touched $970 per 10 grams. On the Multi Commodity Exchange (MCX), October futures even surpassed $1,205 before closing slightly lower, marking a sharp 2% rise in a single trading session.
Analysts point to a global wave of investor sentiment shifting toward gold as a reliable hedge against volatility. Colin Shah, Managing Director at Kama Jewellery, linked the surge to growing friction between former President Trump and US Fed Chair Jerome Powell over monetary policy decisions, particularly rate cuts.
The weakening US dollar, combined with recent tariff escalations on Chinese imports and speculation around Fed actions, has heightened market uncertainty. As interest rates drop, gold becomes a more attractive store of value due to its non-yielding nature.
Furthermore, central banks globally—especially in India and China—are aggressively expanding their gold reserves. This move, part of a broader ‘de-dollarisation’ effort, is designed to reduce dependency on the US dollar amid financial instability.
Shah also noted that seasonal demand around Indian festivals like Akshaya Tritiya typically drives domestic prices upward. However, the global factors at play currently have a more profound influence, keeping gold prices elevated.
With multiple macroeconomic pressures still unfolding, experts believe gold may remain at premium levels in the near term as investors seek safer investment avenues.
