
Gold breaches ₹1-lakh mark as dollar index slides on tariff tension
The Hindu
Gold prices hit ₹1 lakh per 10 grams for the first time due to dollar decline and geopolitical uncertainties.
Gold prices on Tuesday soared above the psychological mark of ₹1 lakh per 10 grams for the first time ever as the U.S. dollar continued to slide amid treasury bond sell-offs and tariff related uncertainties.
The spot price of gold was quoted at ₹1,01,245 for 24 carat per 10 gram, while the gold future was proved at ₹99,000 per 10 grams.
The spike mirrors the rally in gold prices during the first wave of COVID, when it had breached the ₹50,000-mark for the first time in July 2020, as the global economy contracted, on weaker dollar and supply chain disruptions-led trade headwinds, according to analysts.
For India, the second largest gold consumer, mostly by household buyers, followed by China, this eye-popping price level is significant.
This year, gold prices have surged 30% and the rally has sustained for 128 weeks, indicating further rise till some clarity is established.
Renisha Chainani, Head, Research at Augmont said, “Gold has crossed the psychological level of $3,500 an ounce as the dollar fell to a three-year low below 98. President Trump increased pressure on the Federal Reserve, calling for a dramatic rate reduction and even considering replacing Chair Powell.”
“Trump criticised Fed Chair Jerome Powell again on Monday, warning that the U.S. economy will slow unless interest rates are cut promptly,” she said. The comments on Mr. Powell reinforced concerns about the Fed’s independence in establishing monetary policy, as well as the outlook for U.S. assets.