Golden prices are going to hit £ 1 lakh per 10 gram marking, given the growing concern about the American economy in the midst of the current trade rate.
Gold prices have already risen sharply by £ 11,983 per 10 grams or 7 percent in the last month to £ 91.115 of £ 85,320 logged in on 2 March.
Gold had a great start this year to achieve 19 percent returns in the quarter of March, making it the second best quarter after Q3 in 1986. In FY25, the precious metal has achieved an efficiency of 40 percent.
The rally in domestic gold prices was largely powered by a business trend on the global market, where it has risen by $ 3,100 per ounce because of investors looking for safe port activa.
Rate threats
Colin Shah, MD, KAMA jewelry, said there are high chances that Gold Gold will be the £ 1-lakh-mark in 2025 with the anticipation on two interest rate lets by FED this year.
Moreover, he said that it was considered a safe Haven-Activa class, gold witnesses raised the question and increased fund flows in the time of economic uncertainty.
From the beginning of this year, gold prices have reached several new highlights that has spread throughout the world due to the recent uncertainty because of the tariff threats of US President Donald Trump, he added.
The American rate will significantly influence the India’s gold jewelry industry, because the US is the largest export market.
From FY24 the US accounted for 30 percent of the total export of India in this category. India’s rates for the import of gold jewelry (20 percent) are much higher than the American import rates (5.5-7 percent). While the US does not impose rates on cutting and polished diamonds, India has an import rate of 5 percent.
Sriram Iyer, senior analyst at Reliance Securities, said that it is possible that gold will reach £ 1 in this year £ 1 per 10 grams, because it rises only about 10 percent compared to the current trade level of £ 91,100 on the MCX.
The consistent purchase of gold by central banks will also exert an upward pressure on the prices, he added.
The weakening of the rupid is one of the most important factors for the domestic gold prices to go higher and any further depreciation of the rupid will support gold to hit the £ 1-lakh mark. “We see more positives than negatives for the purpose of £ 1 lakh this year,” Iyer said.
