Gold prices hit record high of ₹1,05,600 per 10-gram; gains 34% this year

Hyderabad: Gold prices hit record ₹1,05,600 per 10-gram in the Delhi spot market on Friday.

The surge has been attributed to strong international prices and a weakening rupee. Since the beginning of 2025, the yellow metal has gained nearly 34 per cent, far outpacing equities.

On the Multi Commodity Exchange (MCX), futures rose to a new peak of ₹1,02,600 per 10 grams, while global prices held at $3,410 per ounce, their strongest since April.

Silver also climbed to ₹1,17,825 per kg, marking a 35 per cent gain this year, compared with a modest 2.13 per cent rise in the Sensex.

Geopolitical Uncertainty Spurs Safe-Haven Demand

Fresh military action in Ukraine has unsettled global markets, keeping investors tilted toward safer assets.

Market watchers note that ongoing US-China trade tensions and debates over the Federal Reserve’s independence have only added to the risk-off mood.

Rupee Slide Intensifies Rally

Domestic factors have also magnified the surge. The rupee slipped to an all-time low of ₹88.15 against the US dollar on Friday.

“Every one-rupee fall against the dollar makes gold imports more expensive, and those costs are immediately passed on to consumers,” said Anita Sood, independent economist, speaking to Newsmeter. “The currency weakness has acted like fuel on an already rising fire.”

Crossing the ₹1 Lakh Mark Earlier This Week

Earlier this week, gold breached the historic ₹1,00,000 per 10-gram mark for the first time. Data from the India Bullion and Jewellers Association (IBJA) showed a jump from ₹96,670 to ₹1,00,000 within 24 hours, a rise of ₹3,300.

Other categories mirrored the surge: 22-carat at ₹97,600, 20-carat at ₹89,000, and 18-carat at ₹81,000 per 10 grams. On MCX, October futures touched ₹1,00,484, gaining nearly 2 per cent in a single day.

Lower Yields and Fed Expectations

One factor driving international buying has been the anticipation of US interest rate cuts.

“Expectations of Federal Reserve easing have lowered yields, making gold more attractive compared to bonds and other interest-paying assets,” said Satish Agarwal, Kundan Jewellers and Exporters, speaking to Newsmeter.

Dollar Weakness Boosts Global Demand

A weaker dollar has also magnified demand.

“As the dollar softens, gold becomes cheaper for holders of other currencies. That dynamic is pulling in investors from Europe and Asia in particular,” Agarwal noted.

Flight to Safety Amid Volatility

Heightened political and economic risks are another driver.

“Investor demand for safe-haven assets has risen sharply,” Agarwal explained. “From debates around Fed independence to renewed tensions in Eastern Europe, there is a sense of fragility in markets. Gold is benefiting from that uncertainty.”

Inflation Fears Add Support

Concerns around global inflation have kept further support under gold.

“Inflation expectations remain sticky despite lower commodity prices in some sectors. This creates a floor under gold, as investors look for long-term protection against value erosion,” Agarwal added.

Central Banks Step Up Buying

Beyond private investors, official purchases have been steady. Central banks in India, China, and several emerging economies have been diversifying reserves into gold.

“This strategy of de-dollarisation is about resilience,” said Sood. “By holding more gold, central banks aim to cut dependence on the US dollar and shield their economies from external shocks.”