Gold nears Rs 1 lakh-mark in Delhi on weak dollar, US-China tariff war woes

Gold prices surged sharply on Monday, inching closer to the psychological milestone of Rs 1 lakh per 10 grams, driven by a weak dollar, renewed trade tensions between the US and China, and sustained safe-haven demand.

According to the All India Sarafa Association, gold of 99.9% purity climbed Rs 1,650 to touch Rs 99,800 per 10 grams in the national capital — a significant jump from Friday’s closing rate of Rs 98,150. Similarly, gold of 99.5% purity rose by Rs 1,600 to reach Rs 99,300 per 10 grams, up from Rs 97,700 in the previous session.

So far in 2025, the yellow metal has gained Rs 20,850 — marking a robust 26.41% increase since December 31 of the previous year.

Silver prices also followed suit, rising Rs 500 to Rs 98,500 per kilogram, after holding steady at Rs 98,000 last Friday.

“Gold and silver have seen considerable gains this year, fuelled by persistent geopolitical tensions, expectations of rate cuts, and a softening dollar,” said Satish Dondapati, Fund Manager at Kotak Mahindra AMC. “Since the US tariff announcement on April 2, gold alone has risen over 6%.”

On the Multi Commodity Exchange (MCX), gold futures for June delivery surged Rs 1,621, or 1.7%, to reach a new high of Rs 96,875 per 10 grams.

Internationally, spot gold briefly soared to a record high of USD 3,397.18 per ounce before settling slightly lower at USD 3,393.49. Gold futures crossed the historic USD 3,400 per ounce mark for the first time, gaining USD 80 or 2.4% in a single session.

“Gold continues its strong rally, briefly surpassing the USD 3,400 level,” said Pranav Mer, Vice President, EBG of Commodity & Currency Research at JM Financial Services. “Uncertainty over trade tariffs, a weakening dollar, and rising US Treasury yields are bolstering investor interest. Additionally, Indian festive demand is expected to lend further support.”

Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, noted that the US dollar hitting a new three-year low and heightened safe-haven buying — especially following President Donald Trump’s remarks hinting at removing Federal Reserve Chair Jerome Powell — have added fuel to the bullion rally.

Also Read: Unequal pay, unequal power: Why Delhi’s MLAs are short-changed

Spot silver also gained traction in Asian markets, rising nearly 1% to USD 32.85 per ounce.

Chintan Mehta, CEO of Abans Financial Services, said that investors are closely watching the evolving US tariff policy and commentary from Federal Open Market Committee (FOMC) members. “Any signs of further monetary easing or prolonged geopolitical uncertainty could keep gold’s momentum intact, reinforcing its safe-haven status,” he added.

(With inputs from PTI)