Gold Prices Hit Historic Rs.1 Lakh Mark for the First Time

Gold prices in India surged to unprecedented levels on April 22, 2025, with rates touching a high of around Rs. 99,178 per 10 grams as per MCX Gold Futures, just Rs. 822 short of the historic Rs. 1 lakh mark. According to Goodreturns, the 24-karat (999) gold price stood at Rs. 1,01,350 per 10 grams across India. This sharp rally, marking over 30 percent appreciation since the start of 2025, is fueled by both global and domestic factors. The surge isn’t limited to gold alone; silver prices have also increased, with 1 kg of silver costing around Rs. 1,01,000, as per Goodreturns data.

The primary reason behind gold’s rise is the heightened global economic and geopolitical uncertainty. Internationally, gold is priced at around $3,480 an ounce, fueled by trade tensions, particularly between the US and China, with aggressive tariff hikes and deteriorating diplomatic cooperation.

These developments have pushed global investors toward safe-haven assets like gold, increasing demand and lifting prices. Central banks, especially in China and Russia, have accelerated their gold purchases to diversify their reserves, further tightening global supply and adding momentum to the price rally. In India, the Reserve Bank has adopted a measured pace of gold accumulation, though the importance of gold reserves has risen globally due to uncertainty.

Another key factor is the depreciation of the Indian rupee against the US dollar earlier this year, making gold imports more expensive and contributing to the domestic price surge. Despite record-high prices, the Indian rupee has recently rebounded against the US dollar, yet retail demand remains strong. Jewellery companies have reported strong quarterly data, indicating a sustained demand for higher-value jewelry. However, the high price levels have begun to reshape consumer buying patterns, with some investors turning to silver or other assets due to gold’s reduced affordability.

The gold-to-silver ratio, which measures how many ounces of silver are equivalent in value to one ounce of gold, has reached nearly 106:1. This historically high ratio suggests that silver is undervalued compared to gold. Traditionally, such wide gaps have often preceded periods where silver outperforms gold, but in 2025, gold’s safe-haven status dominated. Silver’s price is influenced by its industrial demand and has shown a moderate price response compared to gold.

In conclusion, India’s gold is nearing Rs. 1 lakh per 10 grams, driven by global economic instability, central bank buying, rupee weakness, and safe-haven demand. The record-high gold-to-silver ratio highlights gold’s dominance in the current market environment, and on the look, the silver remains comparatively undervalued. As long as geopolitical tensions and economic instability continue, gold is likely to retain its appeal as a store of value. Investors should evaluate risks or seek professional advice before making investment decisions.