Gold prices have hit a significant milestone, crossing the much-awaited Rs 1 lakh per 10 grams in the retail market. On Tuesday, June futures of gold on the Multi Commodity Exchange (MCX) surged to a record high of Rs 99,178 per 10 grams, marking a rise of nearly Rs 1,900 from the previous close. In the physical market, gold was priced at Rs 97,200 per 10 grams on Monday, and with the addition of 3% GST, the retail rate crossed the Rs 1 lakh threshold.
This rally comes amid growing global uncertainty, triggered by renewed tensions between US President Donald Trump and the Federal Reserve over interest rate cuts and an escalating trade war between the US and China. The dollar index has dipped to multi-year lows, further boosting gold’s appeal as a safe-haven asset. On Tuesday, COMEX gold was trading near $3,395 per troy ounce, continuing its sharp upward momentum.
“Gold prices extended their record-breaking rally as the new week began with strong early buying,” said Jateen Trivedi, VP of Research at LKP Securities. “This rally is driven 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 further fueled the momentum.”
Should You Buy Gold Now?
Analysts suggest that while gold prices could remain volatile in the short term, the overall outlook remains firm. However, they caution against short selling at these elevated levels.
Rahul Kalantri from Mehta Equities outlined key support and resistance levels for investors: “In INR terms, gold has support at Rs 96,750–96,200 and resistance at Rs 97,050–97,690. Silver’s support lies at Rs 94,680, with resistance near Rs 97,550.”
Trivedi also urged caution, advising investors to keep positions light given the sharp rise in prices. “Technically, as long as COMEX holds above $3,250 and MCX remains above Rs 91,000, the uptrend remains intact. However, due to the steep rise, managing risk is crucial,” he added.
Gold has already surged over 26% or Rs 20,800 per 10 grams so far in 2025. Despite the strong momentum behind the rally, experts recommend a cautious approach.
For those looking to invest now, it’s advisable to enter in small tranches or wait for price dips. Keeping an eye on global cues, especially the dollar index and US-China developments, will be essential in navigating the market’s volatility.
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