In a significant development for bullion markets, gold prices have breached the ₹1 lakh threshold in the physical market. In contrast, gold futures on the Multi Commodity Exchange (MCX) touched a new record high of ₹99,178 per 10 grams on Tuesday.
Gold Prices Surge Across Major Cities
The surge comes amid global market volatility and a weakening U.S. dollar, enhancing the appeal of gold as a safe-haven asset. Gold futures rose nearly ₹1,900 from the previous session, after Monday’s retail market prices already hinted at a major rally. Physical gold had traded at ₹97,200 per 10 grams before Goods and Services Tax (GST), and when factoring in 3% GST, retail prices crossed the ₹1 lakh mark.
Silver futures also witnessed gains, opening 0.33% higher at ₹95,562 per kilogram, an increase of ₹315 from the previous session. Domestically, gold June futures closed the earlier session at ₹97,279 per 10 grams with a 2.13% rise, while silver May futures ended at ₹95,247 per kilogram, up 0.22%.
Analysts attribute the price spike to heightened uncertainty in global financial markets and ongoing trade tensions between the United States and China. The U.S. Dollar Index (DXY) slipped to 98.12, marking a 0.16% decline, boosting gold’s attractiveness to investors.
“Uncertainty over global markets and the U.S.-China trade situation continues to support precious metals,” said Manoj Kumar Jain of Prithvifinmart Commodity Research, according to an ET report. He expects volatility to persist this week, with gold likely holding above the $3,200 mark per ounce internationally and silver expected to maintain levels around $29.88 per troy ounce.
Physical Market Rates (April 22, 2025):
- Delhi:
- Standard Gold (22 carat): ₹57,184 per 8 grams
- Pure Gold (24 carat): ₹60,984 per 8 grams
- Mumbai:
- Standard Gold (22 carat): ₹57,496 per 8 grams
- Pure Gold (24 carat): ₹61,264 per 8 grams
- Chennai:
- Standard Gold (22 carat): ₹56,912 per 8 grams
- Pure Gold (24 carat): ₹60,632 per 8 grams
- Hyderabad:
- Standard Gold (22 carat): ₹56,896 per 8 grams
- Pure Gold (24 carat): ₹60,640 per 8 grams
Meanwhile, silver prices, although initially buoyant, saw some cooling as investors indulged in profit-taking, particularly in industrial metals.
The continued softness in the dollar, coupled with geopolitical and trade tensions, is expected to keep bullion prices on a firm footing in the near term.
