Tue Apr 22 16:20:00 UTC 2025: ## Gold Prices Soar Past Rs 1 Lakh Per 10 Grams Amidst US Political Uncertainty
**Mumbai, India** – Gold prices in India have reached unprecedented heights, surpassing Rs 1 lakh per 10 grams for the first time. This surge is driven by a confluence of factors, primarily stemming from escalating tensions between US President Donald Trump and the Federal Reserve.
On Tuesday, 24-karat gold reached Rs 101,350 per 10 grams in Mumbai, while 22-karat gold was priced at Rs 92,900. This dramatic increase mirrors a global trend, with international gold prices exceeding $3,400 per ounce. The weaker US dollar, currently at a three-year low, further fuels the price hike, making gold more affordable for international investors.
Trump’s criticism of Federal Reserve Chairman Jerome Powell and his plans to overhaul the central bank have injected significant uncertainty into the market. Analysts like Jateen Trivedi of LKP Securities point to escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis as contributing factors. N S Ramaswamy, head of commodities at Ventura, highlights the impact of Trump’s actions on investor confidence, weakening the dollar and boosting gold’s safe-haven appeal.
The heightened geopolitical risks, including ongoing tensions in Ukraine, and persistent inflation concerns are also contributing to the gold rush. Strong central bank demand, particularly from China, further strengthens the bullish sentiment.
India, the world’s second-largest gold market after China, witnessed a significant increase in gold demand in 2024 (802.8 tonnes compared to 761 tonnes in 2023), with a 31% rise in value to Rs 5.15 lakh crore. This surge is partly attributed to increased gold loan applications, as consumers utilize their gold holdings to meet financial needs amidst economic uncertainty. The rise of digital platforms has made accessing gold loans easier.
The gold price rally is expected to continue, impacting both investment strategies and consumer behavior in India. The Nintendo Switch 2 pre-order date was even shifted due to new tariff regulations, demonstrating the far-reaching effects of the current global economic climate.
First Piper 