Gold price today in Delhi retail market hits ₹1 lakh. Can MCX gold rate hit the landmark this month?

Gold prices in the retail market of Delhi surged to a historic high of ₹1 lakh per 10 grams on Tuesday, driven by strong safe-haven and investment demand for the yellow metal.

On the Multi Commodity Exchange (MCX), gold prices breached the ₹99,000 mark for the first time, mirroring the rally in international bullion prices. Weakened risk appetite among investors further bolstered the demand for gold as a safe-haven asset.

MCX gold rate opened higher at ₹98,753 per 10 grams, compared to the previous close of ₹97,279. Gold prices rallied by ₹1,899 or 1.95% during the session, hitting a new all-time high of ₹99,178 per 10 grams.

In the international market, gold prices extended record-breaking rally amid mounting investor concerns following US President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell.

Spot gold climbed 1.7% to $3,482.26 an ounce, after reaching a session high of $3,494.66. US gold futures also gained 2%, trading at $3,492.60 per ounce.

Gold prices received a further boost from weakness in the US dollar that sank to a fresh seven-month low. The US dollar index measure against six major peers declined to 98.117, after sinking as low as 97.923 in the previous session, a level not seen since March 2022.

Will MCX Gold Rate hit ₹1 Lakh?

Analysts anticipate that MCX gold prices will soon breach the ₹1 lakh per 10 grams mark, supported by the ongoing rally in international bullion markets. The surge is being fueled by heightened economic uncertainty, largely stemming from escalating trade war concerns.

“MCX Gold June Futures have surged past the ₹99,000 per 10 grams mark, and in the physical market, including GST, prices have already breached the ₹100,000 per 10 grams level. With momentum firmly in place, we expect MCX Gold to cross this symbolic milestone in the coming weeks,” said Jigar Trivedi, Senior Research Analyst - Currencies & Commodities, Reliance Securities.

Gold prices have rallied 4% over the past week, and while the undertone remains decidedly bullish, Trivedi advises investors to exercise caution as the market is exhibiting heightened volatility, and aggressive positioning may expose portfolios to undue risk.

Gold has long been regarded as a hedge against inflation and global economic instability, making it a preferred safe-haven asset during times of market turbulence.

The Trump administration’s tariff policies have also contributed to the surge in gold demand. These protectionist measures have heightened fears of a potential global recession, prompting investors to seek refuge in safe-haven assets like gold.

Moreover, Trump’s recent push for an investigation into critical mineral tariffs, particularly those involving major suppliers like China, risks escalating trade friction at a time when supply chain resilience remains fragile, Jigar Trivedi noted.

“Against this backdrop, Comex Gold has delivered over 30 percent returns year to date, reaffirming its status as a safe haven asset. With uncertainty continuing to dominate the macroeconomic landscape, gold’s upward trajectory appears intact in the near term, although investors are advised to proceed with prudence,” Trivedi said.

Uday Kotak, Founder and Director of Kotak Mahindra Bank praised gold price performance over time, especially highlighting how Indian households have long recognized its value.

“The performance of gold over time highlights that the Indian housewife is the smartest fund manager in the world. Governments, central banks, economists, who support pump priming, high deficit funding, may need to take a leaf from India, a net importer of store of value forever!” he said in a social media post.

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