Gold Nears Rs 1 Lakh Mark in India as Global Uncertainty Fuels Surge

As global economic and geopolitical uncertainties intensify, gold prices in India are rapidly approaching the symbolic Rs 1 lakh per 10 grams mark, reinforcing the precious metal’s stature as a trusted safe-haven asset.

Driven by fears of a potential economic slowdown in the United States and escalating trade tensions, global bullion markets have witnessed a sharp rally in recent weeks. Analysts attribute this uptrend to the resurgence of aggressive tariff measures by U.S. President Donald Trump, sparking concerns over international trade disruptions and their potential impact on global growth.

Global brokerage giant Goldman Sachs has projected a bullish trajectory for gold, forecasting prices to soar to $3,700 per ounce in the near term. Should trade tensions deepen, the firm estimates a possible surge to as high as $4,500 per ounce. Such a scenario could push Indian gold prices on the Multi Commodity Exchange (MCX) to Rs 1 lakh—or even Rs 1.25 lakh—per 10 grams, market experts suggest.

Gold’s Meteoric Rise Over Five Years

Over the last five years, gold has delivered stellar returns to Indian investors. From Rs 44,906 per 10 grams on April 17, 2020, the yellow metal has surged over 110 percent to reach Rs 95,239 per 10 grams as of April 17, 2025. This year alone, prices have risen by nearly 25 percent, underscoring gold's enduring appeal in uncertain times.

US Recession Fears Fueling Rally

According to Anuj Gupta, Head of Commodity and Currency at HDFC Securities, the ongoing rally is largely driven by recessionary fears in the United States. “The safe-haven demand for gold has surged as investors brace for the potential fallout from renewed tariff wars. A one percent hike in tariffs could trim U.S. GDP growth by 0.10 percent, as per U.S. Fed Chair Jerome Powell,” Gupta said, in a statement to IANS.

Despite recent gains in equity markets, analysts caution that gold still holds upside potential. “Any correction in prices should be viewed as a buying opportunity,” Gupta added, citing persistent inflationary pressures and geopolitical instability as continuing tailwinds for gold.

‘Buy on Dips’ Strategy Recommended

Navneet Damani, Group Senior Vice President at Motilal Oswal, echoed similar optimism. “Central bank purchases, inflation concerns, and prolonged global trade tensions will continue to support bullion prices,” he noted. Damani identified near-term support for gold at Rs 91,000, with resistance pegged at ₹99,000, advising investors to adopt a ‘buy on dips’ strategy amid the ongoing volatility in global markets.

As both domestic and international economic headwinds persist, experts predict that gold will remain firmly positioned as a stable investment avenue. For Indian investors seeking shelter from market turbulence, the yellow metal continues to glitter—perhaps more brightly than ever before.