Discover why gold prices in India crossed ₹1 lakh per 10 grams on MCX for the first time. Learn about global tensions, a weak rupee, and US economic trends driving this historic rise. Domestic mcx gold futures jumped 2.2% to touch ₹1,00,403 per 10 grams in early trade. This psychological milestone reflects both domestic currency weakness and strong overseas cues.
On June 13, 2025, 10:10am gold prices in India reached an all-time high, crossing ₹1 lakh per 10 grams on the Multi Commodity Exchange (MCX). This is a historic moment for the gold market, driven by global events, a weaker Indian rupee, and shifting economic trends. Let’s break down why gold is shining brighter than ever.
What Happened to Gold Prices?
Gold prices jumped 2% in early trading, hitting ₹1,00,403 per 10 grams on the MCX. This is the first time gold has crossed the ₹1 lakh mark in India, making it a significant milestone. The price hike is tied to both local and global factors, which we’ll explore below.
Why Are Gold Prices So High?
Several reasons explain this record-breaking rally. Here’s a simple look at the key factors:
Rising Tensions in the Middle East
Conflicts between Israel and Iran have shaken global markets. Israel’s recent airstrikes on Iran have raised fears of retaliation, including possible missile or drone attacks. This uncertainty pushes investors toward gold, a “safe-haven” asset that people trust during troubled times.
As Aksha Kamboj from the India Bullion and Jewellers Association said, “The Middle East situation is getting worse, and this could push gold prices even higher.”
A Weaker Indian Rupee
The Indian rupee is losing value against the US dollar, making imported gold more expensive. When the rupee weakens, it costs more to buy gold in India, driving up local prices.
US Economic Changes
In the US, recent data shows inflation slowing down and fewer people finding jobs. This has led many to believe the US Federal Reserve might cut interest rates soon, possibly starting in September 2025. Lower interest rates make gold more attractive because it doesn’t pay interest like savings accounts or bonds.
Rahul Kalantri from Mehta Equities noted, “Gold prices jumped as the US dollar weakened and demand for safe assets grew.”
Global Gold Market Trends
Worldwide, gold prices are climbing too. Spot gold reached $3,428.28 per ounce, the highest since early May, and US gold futures hit $3,449.60 per ounce. This week alone, gold prices have risen over 3.5%, showing strong global demand.
Tim Waterer, a market expert at KCM Trade, explained, “With tensions rising in the Middle East, investors are focusing on safe assets like gold instead of risky trade deals.”
What’s Next for Gold Prices?
Experts predict gold prices could keep rising if global tensions and economic trends continue. For example, ongoing US-China trade disputes and threats of new tariffs are making investors nervous, pushing them toward gold.
In the global market, gold has support (a price level it’s unlikely to fall below) at $3,400–$3,475 per ounce and resistance (a level it may struggle to break through) at $3,500 per ounce. In India, support is at ₹97,000 per 10 grams, with resistance at ₹1,00,900 per 10 grams.
Why Does This Matter to You?
If you’re thinking about buying gold for jewelry, investments, or savings, these high prices might affect your decision. Gold is often seen as a reliable way to protect wealth during uncertain times, but its high cost could mean waiting or budgeting carefully.
How Trump’s move to overhaul Fed is driving up gold prices
The criticism of the US Federal Reserve by President Donald Trump has shaken the investor confidence pushing the dollar sharply lower and catapulting safe-haven gold to a record high. “These are stoking concerns about the independence of the Fed, sending ripples through financial markets. US Dollar (three-year low) and the risk-on equity markets takes a beating while gold stands to benefit,” said N S Ramaswamy, head of commodities at Ventura.
Trump recently said that he can’t wait to sack Powell for not cutting dollar interest rates even as the US-China trade war risks are crushing the dollar and spiking inflation.
On Monday, the US dollar continued its slide, falling to its lowest level since 2022, as global investors retreat from US assets in the face of tension between Trump and the Federal Reserve. The ICE US dollar Index which measures the greenback against a basket of foreign currencies, fell as low as 97.92 on Monday.
How big is the Indian gold market?
India is the 2nd largest gold market in the world after China. Gold demand in the country in 2024 stood at 802.8 tonnes, as against 761 tonnes in 2023. China’s demand was 985 tonnes. The total gold demand value in India went up by 31 per cent at Rs 5.15 lakh crore in 2024, compared to Rs 3.92 lakh crore in 2023, according to a World Gold Council (WGC) report,
Gold holds a significant place in Indian culture, often being accumulated over generations. During times of financial need such as hospital expenses and college fees, individuals are more willing to pledge their gold holdings like jewellery to secure loans.
“The slowdown in the economy in the last few months would have prompted consumers to pledge gold to meet the financial requirements. During periods of economic uncertainty like trade wars or inflation, gold is perceived as a stable asset, prompting individuals to opt for gold loans to meet immediate financial needs,” said an analyst. The growth of digital platforms, apps and fintech solutions has also made gold loans more accessible and attractive, even in remote areas, contributing to their rising popularity.
As gold prices continue to glitter, gold loans are likely to remain a popular financing option for individuals across the country.
Why gold prices crossed Rs 1 lakh-mark
Gold prices in India generally follow international prices. Global gold prices continued to surge with rates crossing $3,400 an ounce even as the US dollar tumbled. Gold has gained nearly 59 per cent since March 2024. A weaker dollar boosts demand for gold, since it makes the metal more affordable to investors holding foreign currencies.
Gold price today in New York is around $3,486.85 per troy ounce. The gold price rally is largely driven by renewed uncertainty surrounding US monetary policy, after Trump unveiled plans to overhaul the Federal Reserve. The US President intensified his attack on Federal Reserve chief Jerome Powell for not cutting interest rates even as the US dollar sinks in the currency market.
Meanwhile, the US Fed issued a warning that tariffs could threaten its dual mandate of maintaining stable prices and full employment, which further strengthened gold’s safe-haven appeal.
Final Thoughts
Gold’s record-breaking rise past ₹1 lakh in India is a big deal. From Middle East conflicts to a weaker rupee and US economic shifts, several factors are fueling this surge. If these trends continue, gold could climb even higher, so keep an eye on the market if you’re planning to buy or invest.
