Gold prices breach ₹1 lakh mark amid global uncertainty and Fed policy concerns

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Chaitanyesh
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Gold prices breach ₹1 lakh mark amid global uncertainty and Fed policy concerns
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  • Gold prices in India cross an unprecedented ₹1,00,000 per 10 grams today
  • Driven by a steep surge in international rates, global financial volatility
  • Gold has gained nearly 59% since March 2024, bolstered by uncertainty

Gold prices in India crossed an unprecedented ₹1,00,000 per 10 grams on Tuesday, driven by a steep surge in international rates and heightened global financial volatility. The 24-karat gold rate in Mumbai's bullion market touched ₹1 lakh per 10 grams, while 22-karat gold was priced at ₹91,600 per 10 grams.

Also read: Gold prices surge to record Rs 96,540 per 10g, nears Rs 1 lakh mark

This milestone comes as global gold prices soar past $3,400 an ounce, with current rates in New York nearing $3,487. The rally is attributed to a sharp decline in the US dollar and renewed investor interest in gold as a safe-haven asset. The metal has gained nearly 59% since March 2024, bolstered by increasing economic and geopolitical uncertainty.

Markets reacted to US President Donald Trump's announcement to overhaul the Federal Reserve, stoking fears of inflation and interest rate volatility. His public criticism of Fed Chair Jerome Powell and aggressive tariff plans have further unsettled investors, prompting a flight to gold.

The Federal Reserve has also raised concerns that escalating tariffs could hinder its goals of price stability and full employment. This has further intensified the safe-haven appeal of gold.

Additional factors supporting the surge include strong demand from central banks, sustained purchases by China and institutional investors, and rising geopolitical tensions, particularly surrounding the Russia-Ukraine conflict. These elements have combined to create a bullish momentum for gold, solidifying its role as a hedge against growing global uncertainties.

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