Gold’s glitter: On fire, yellow metal’s futures breach the Rs. 1 lakh mark/10 gm
Virendra Pandit
New Delhi: With global financial uncertainties persisting amid ongoing trade war and the American dollar weakening, the media reported that gold futures on Tuesday breached the Rs. 1 lakh mark per 10 gm in a historic first.
On the Multi-Commodity Exchange (MCX), the August delivery contract of the yellow metal bounced by Rs. 2,048 or 2.1 percent to hit a fresh peak of Rs. 100,000 per 10 grams in the mid-session trade.
In 2025, gold prices have surged by a third as trade tensions roiled markets and eroded trust in dollar assets, boosting some traditional havens to park money.
Gold future prices sustained upward trend for the fourth straight session as investors rushed to safe havens after President Donald Trump indicated plans to overhaul US Federal Reserve amid relentless global trade war jitters.
Later, however, the yellow metal traded at Rs. 99,790 per 10 grams, up by Rs. 1,838 or 1.88 percent, with an open interest of 2,492 lots.
Besides, the October contract bounced by Rs. 2,016 or 2.04 percent to hit a record high of Rs. 1,00,500 per 10 grams on the MCX. The most-traded June contract climbed by Rs. 2,079 or 2.14 percent to touch a record high of Rs. 99,358 per 10 grams.
Market experts said the surge in the precious metal’s prices was sparked by concerns surrounding US monetary policy, after President Donald Trump unveiled plans to overhaul the Federal Reserve, and possibly sack its Chair Jerome Powell.
Gold prices have seen successive record highs in 2024 and also this year, which was driven by luring inflows to exchange-traded funds — as the prospect of widespread economic disruption, because of the trade war, bolstered haven demand.
In the international markets, gold futures jumped by USD 83.76 per ounce or 2.44 percent to establish a record high of USD 3,509.06 per ounce. Later, it pulled back to trade at USD 3,491.25 per ounce, up by USD 65.95 or 1.93 percent.
On Monday, President Trump reiterated his call for the US Federal Reserve to cut interest rates immediately, saying the American economy could slow down if the regulator failed to cut the rates.
Gold showed very high price volatility amid uncertainty in the global markets. The dollar index slipped to 3-year lows after the Trump-Powell tussle over interest rate cuts.
On Friday, White House economic advisor Kevin Hassett said that President Trump and his team were studying whether they could fire Powell.
Last week, Powell said the US central bank was not inclined to cut interest rates in the near future, citing the possible inflationary pressures and economic uncertainties stemming from the new tariffs.
