Gold prices hit ₹1 lakh: Uday Kotak crowns Indian housewife as ‘smartest fund manager’

Gold prices today: As the gold prices hit the coveted ₹1 lakh mark in the Indian retail market, billionaire banker Uday Kotak hailed the Indian housewife, calling her ‘the smartest fund manager in the world’.

“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!” said Kotak Mahindra Bank founder Uday Kotak in a post on social media platform X on Tuesday, April 22.

Gold prices cross ₹1 lakh

Gold prices crossed the ₹1 lakh per 10 grams mark in the retail market on Monday evening, following MCX gold prices breaching the ₹97,200 level. This milestone includes the 3% Goods and Services Tax (GST) applicable on gold purchases in the spot market.

In the futures market, too, the gold rate today neared the ₹1,00,000 level, as it hit a fresh high of ₹99,178 per 10 grams on the MCX today.

The rally in gold prices is being supported by escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis. “Continued buying from China, global central banks, and institutional investors has added momentum to the bullish sentiment,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Additionally, a weak US dollar is also supporting the buying in the yellow metal, as any dip in the greenback makes gold cheaper for holders of other currencies.

So far in 2025, gold prices have risen a little over 25%, with no end in sight to the rally. This bodes well for Indian women who own large quantities of gold.

Indian women's love for gold

A report by the Times of India in December 2024, quoting the World Gold Council, said that Indian women collectively own around 24,000 tons of gold, which accounts for about 11% of the world’s total gold reserves in the form of jewellery.

As per the report, the combined gold held by Indian women exceeds the official reserves of the top five countries combined. The United States holds around 8,000 tonnes of gold, followed by Germany (3,300 tonnes), Italy (2,450 tonnes), France (2,400 tonnes), and Russia (1,900 tonnes). Even when added together, these nations fall short of the gold collectively owned by Indian women, the Times of India report noted.

Price surge dents jewellery demand

According to the World Gold Council (WGC), record-high prices have dented demand, particularly for gold jewellery, with purchases restricted to those that are need-based, primarily weddings.

This slowdown is broad-based across both urban and rural areas. Reports indicate that consumers continue to wait on the sidelines, hoping for a correction in prices or at least signs of price stability. Despite this, notwithstanding an easing in momentum, investment demand for bars and coins remains relatively healthy, driven by bullish sentiment regarding the future trajectory of the gold price, said the WGC report.

Domestically, it is observed that the gold price witnesses a slight rise around festive seasons. With Akshaya Tritiya approaching, the spike in demand is visible. “The sentimental and cultural value attached towards investing in yellow metal on auspicious occasions like this will keep the demand upbeat, irrespective of the price trend,” said Colin Shah, MD, Kama Jewelry.

Should you buy gold at ₹1 lakh?

Analysts expect the rally in gold prices to last in the medium-to-long term, however, they advise treading cautiously for now.

The broader global macroeconomic environment continues to favour gold and other safe-haven assets. Unless a meaningful resolution to global trade disputes is reached, the upward trajectory for bullion prices appears well-supported in the medium to long term, analysts said.

“In an environment dominated by policy uncertainty, inflationary pressures, and volatile geopolitics, gold continues to be a beacon of stability. As central banks bolster their reserves and investors seek safety, we believe gold will remain a favoured asset. Barring any significant resolution in global trade tensions, we maintain a ‘buy on dips’ view from a medium to long-term perspective,” said Navneet Damani, Group Sr. Vice President, Head Commodity & Currency Research, Motilal Oswal Financial Services.

Meanwhile, Jateen Trivedi of LKP Securities said that technically, as long as Comex holds above $3,250 and MCX above ₹91,000, the uptrend remains intact.

"Any dips towards ₹93,000 in MCX may offer fresh buying opportunities. However, given the elevated levels, speculators are advised to maintain low-risk positions to manage potential volatility," Trivedi added.

While the gold price is on an upward trajectory, the fall in USD will make gold affordable in other currencies, keeping the demand-price dynamics balanced, said Colin Shah. As the global economic development unfurls, he projects the gold price to breach the USD 3600/Oz in the international market during FY26.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.