Gold prices soar past ₹1,00,000 – here’s why the rally isn’t stopping

Gold prices in India surged to an all-time high of ₹101,770 per 10 grams in Ahmedabad on Tuesday, April 22, 2025, reflecting a strong upward trend in the bullion market. On the Multi Commodity Exchange (MCX), gold closed at ₹97,279 per 10 grams, marking a significant gain. Meanwhile, international gold prices were trading at $3,468.69 per ounce as of 13:44 AM IST, underscoring the global rally driven by safe-haven demand and macroeconomic uncertainties.

Colin Shah, MD, Kama Jewellery, said, “The new all-time-high attained by the yellow metal is primarily influenced by the rising tensions between President Trump and US Fed Chair Jerome Powell regarding the Fed rate cut. Additionally, weakness in the USD following the tensions between Trump and US Fed Chair and uncertainties around the US-China trade war are another crucial factors that has pushed gold price to a record high."

While the gold price is on an upward trajectory, the fall in USD will make gold affordable in other currencies, keeping the demand-price dynamics balanced. Shah said that as the global economic development unfurls, we project the gold price to breach the USD 3600/Oz in the international market during FY26.

"Domestically, it is observed that gold price witnesses a slight rise around festive season like Akshaya Tritiya, in reflection to the spike in demand. The sentimental and cultural value attached towards investing in yellow metal on auspicious occasions like this will keep the demand upbeat, irrespective of the price trend," said Shah.

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said, "Comex gold futures surged over 3% to a new record high of $3,442.30, fueled by intensified safe-haven buying amid growing uncertainty surrounding the Federal Reserve’s independence."

The rally gained further momentum as the US Dollar Index slipped to a three-year low of 97.9, weighed down by market concerns following former President Donald Trump’s threat to dismiss Fed Chair Jerome Powell.

"Today, COMEX Gold extended its gains to surpass $3,500 for the first time ever, driven by continued dollar weakness, Trump-Powell standoff, and investor anxiety over economic headwinds stemming from renewed tariffs," said Chainwala.

Additionally, warnings from China, cautioning nations against entering trade agreements with the US at their expense, added to gold’s appeal as a hedge against geopolitical and economic risk. "Investors are now closely watching upcoming remarks from several Federal Reserve officials for further clarity on policy direction," added Chainwala.