Gold futures breach ₹1 lakh-mark, surge by ₹2,048/10 gram
Gold Breaches ₹1 Lakh Per 10 Grams in Delhi: Investors Turn to Safe Havens Amid Global Uncertainty
In a historic surge, gold prices crossed the ₹1 lakh mark per 10 grams in Delhi on Tuesday, reaching ₹1,00,000, a level never seen before in Indian markets. This significant rise reflects growing investor anxiety across the globe, especially after U.S. President Donald Trump’s statement on a potential overhaul of the Federal Reserve, coupled with escalating global trade tensions.
This is the fourth consecutive session in which gold futures have rallied, with prices jumping by ₹2,048 on a single day. The sharp upward movement signals a shift in investor sentiment toward traditional safe-haven assets as global markets remain turbulent.
What’s Driving the Surge?
Several factors have come together to push gold to these record highs. At the heart of it is investor uncertainty. In times of geopolitical or economic unrest, gold often becomes the asset of choice for those looking to safeguard their wealth.
Here’s what’s fueling the current surge:
1. Global Economic Tensions
U.S. President Donald Trump recently hinted at plans to overhaul the Federal Reserve, a move that has unsettled global financial markets. The statement has raised questions about the central bank’s future independence and its ability to manage interest rates without political pressure.
At the same time, ongoing trade disputes, particularly between the U.S. and China, continue to impact investor confidence. As talks stall and tariff threats escalate, markets are responding with caution.
2. Safe-Haven Demand
When traditional assets like stocks and currencies become volatile, gold typically sees a surge in demand. Investors across the world are currently shifting their portfolios from equities into precious metals, with gold being the most popular choice.
In India, where gold is not only a financial asset but also culturally significant, this demand is even more pronounced. People see gold as a hedge against inflation and currency devaluation.
3. Weakening Rupee
The Indian rupee has also been showing signs of weakness against the U.S. dollar. Since gold is priced internationally in dollars, any decline in the rupee’s value automatically makes gold more expensive for Indian buyers, contributing further to the price rise.
Market Sentiment on the Ground
Jewellers and bullion dealers in Delhi’s Chandni Chowk and Karol Bagh areas confirmed the historic price movement. While footfall in stores has declined due to high prices, serious investors continue to buy in small quantities.
Rakesh Jain, a bullion trader, said, “This kind of surge was expected. The market was under pressure for the last few months. Whenever there’s global unrest or economic signals turn negative, gold gains momentum.”
He added that although casual buyers are holding off, institutional buyers and long-term investors are using every dip as an entry point.
Investment Perspective: Risk or Opportunity?
From an investment point of view, such record highs can be both exciting and intimidating. While some investors see this as a warning to stay away, others view it as a sign of things to come.
Anjali Mehta, a financial advisor based in Delhi, said, “Gold is a long-term store of value. If someone is buying today, they should do so with a long horizon. Don’t expect short-term returns. But yes, if the global situation worsens, gold can go even higher.”
She advises investors to allocate 10–15% of their portfolios to gold, especially in uncertain times.
Impact on the Common Man
For the average Indian, gold plays a dual role — as an investment and as an essential part of weddings and festivals. With gold touching ₹1 lakh per 10 grams, middle-class families are feeling the pinch.
Many are postponing wedding purchases or switching to lightweight jewellery. Some are opting for gold coins and digital gold, which offer lower entry points.
“I had planned to buy jewellery for my daughter’s wedding next month, but prices have shot up beyond our budget,” said Suman Luthra, a homemaker from West Delhi. “We are now considering buying just one or two essential pieces and waiting for prices to settle.”
What Lies Ahead?
While gold has reached new heights, analysts are divided over where it goes from here. Some believe that ₹1.05–1.10 lakh per 10 grams is possible if global uncertainties persist or worsen. Others caution that any positive developments — such as trade agreements or stable monetary policy — could cause a correction in prices.
One thing is certain: the gold market is currently riding a wave of fear, uncertainty, and shifting global strategies.
Conclusion: A Shining Milestone Amid Gloom
The breach of ₹1 lakh per 10 grams marks a milestone in India’s financial landscape. While it brings cheer to gold investors, it also raises concerns for regular consumers, particularly those preparing for life events like weddings.
As global developments continue to unfold and investors seek security, gold will likely remain in the spotlight. Whether this trend sustains or retreats depends heavily on how world leaders, central banks, and markets respond to the economic and political challenges ahead.
For now, gold remains the golden shield against global uncertainty — even if it comes with a heavier price tag.
