Gold has officially crossed the ₹1 lakh mark in India, with the MCX Spot market price settling at ₹1,00,130 on July 23. This is a significant jump from the previous day’s closing of ₹99,026. The surge has caught the attention of both investors and common buyers, marking one of the fastest upward price moves seen in recent months. The steep ₹2.5 lakh per kilogram rise in just five working days has added urgency to ongoing conversations around safe-haven investments.
Globally, gold traded at around $3,410 per ounce on Wednesday. This marked a slight retreat from a five-week high, breaking a three-day winning streak. Still, the overall sentiment around gold remains strongly positive. The rise has been attributed to a complex mix of global economic instability, rising import tariffs, and political uncertainty surrounding the upcoming US presidential elections. The geopolitical shifts have also had ripple effects across commodity markets, leading to sharp price movements.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions, explained that the rally in gold is largely driven by global volatility. He noted that international gold prices have breached key resistance levels and are now finding support at $3,498. According to him, the outlook for gold remains bullish over the long term, even though a short-term correction of around $200 is anticipated due to the rapid price increase.
However, the high prices have slowed domestic demand. Consumers are showing restraint at these elevated levels, despite the long-term gains being evident. The spike has also impacted silver, which has turned bullish alongside gold. Silver is trading above $39 an ounce, approaching its highest levels since 2011. This trend is being supported by a weaker US dollar and lower Treasury yields, both of which have historically pushed precious metal prices higher.
In the last month, gold has delivered a return of 2.6 percent, while its one-year performance stands at over 42 percent. Silver, too, has climbed 9.5 percent in the last month and nearly 36 percent over the past year. Analysts believe that much of the future movement in gold and silver prices will hinge on the outcome of global trade negotiations, especially those being spearheaded by US President Donald Trump.
In a recent announcement, Trump confirmed a new trade deal with Japan that involves reduced tariffs and increased market access for US goods. The deal includes a 15 percent tariff on automobile imports from Japan and proposes a $550 billion fund to support investment initiatives. This has raised optimism for similar agreements with other countries, including Indonesia and the Philippines. However, deals with some of the largest trade partners remain uncertain, keeping global markets on edge.
Trump's ongoing criticism of Federal Reserve Chair Jerome Powell has also fueled concern. Trump accused Powell of maintaining unnecessarily high interest rates and hinted at his potential removal, claiming he would be out in eight months. These comments, combined with expectations of possible interest rate cuts in the coming months, are increasing market uncertainty. Investors are now watching the upcoming Federal Reserve meeting closely, where the central bank is likely to keep rates steady.
Meanwhile, a meeting between US and Chinese officials in Stockholm next week could further influence global trade sentiment. Treasury Secretary Scott Bessent mentioned the possibility of extending the current tariff truce with China, which could either ease or escalate tensions depending on the outcome.
Back home, gold's milestone price has made headlines but also prompted caution. Many investors are re-evaluating their entry points, while others are holding on, expecting higher gains in the long run. With global factors constantly shifting, gold is likely to remain a key player in investment portfolios over the coming months.
For more updates on precious metals, market trends, and smart money moves, follow You Finance on Instagram and Facebook. Stay informed and make better financial decisions every day.
