Gold Prices Cross ₹1 Lakh Mark as Trump Criticises US Fed Chair
Gold prices in India surged past the ₹1 lakh mark per 10 grams on Tuesday, driven by global economic uncertainty and criticism by Donald Trump of US Fed Chair Jerome Powell.
In a historic surge, gold prices in India, inclusive of a 3% GST, touched ₹1,00,116 per 10 grams. On the Multi Commodity Exchange (MCX), futures were trading at ₹98,991 per 10 grams—up 1.76%. Silver followed suit, gaining 0.62% to ₹95,840 per kg.
In global markets, spot gold climbed 1.4% to a record $3,472.49 per ounce, briefly touching $3,473.03. US gold futures were up 1.7% at $3,482.40.
The rally comes amid fresh attacks by former US President Donald Trump on Federal Reserve Chair Jerome Powell. Trump demanded immediate interest rate cuts and warned of a potential economic slowdown, triggering investor flight to safe-haven assets.
“Investors have been giving a wide berth to US assets amid tariff worries and Trump-Powell dramas, which has kept gold in prime position to capitalise on the dollar’s woes,” said Tim Waterer, chief market analyst at KCM Trade.
The dollar index plunged to three-year lows following the political discord, which further intensified gold’s appeal among risk-averse investors.
Ongoing trade tensions between the US and China also played a significant role in boosting demand for precious metals. The rising geopolitical and economic instability has bolstered gold’s safe-haven status.
“Gold and silver showed very high price volatility amid uncertainty in the global markets,” said Rahul Kalantri, VP (commodities) at Mehta Equities Ltd. “Instability in the US dollar increased safe-haven bid for gold.”
Experts believe the upward momentum in gold may persist if political and economic tensions continue to escalate. Investors are closely watching upcoming statements from the Fed and the Trump campaign for further cues.
