Gold futures breach Rs 1 lakh-mark, surge Rs 2,048/10 g

New Delhi: Gold future prices sustained upward trend for the fourth straight session by surging Rs 2,048 to hit a fresh record high of Rs 1,00,000 per 10 grams as investors rushed to safe havens after US President Donald Trump indicated plans to overhaul Federal Reserve amid continuing global trade war jitters.

On the Multi Commodity Exchange (MCX), the August delivery contract of the yellow metal bounced by Rs 2,048 or 2.1 per cent to hit a fresh peak of Rs 1,00,000 per 10 grams in the mid-session trade.

Later, the precious metal trade at Rs 99,790 per 10 grams, up by Rs 1,838 or 1.88 per cent, with an open interest of 2,492 lots.

Additionally, the October contract bounced by Rs 2,016 or 2.04 per cent to hit a record high of Rs 1,00,500 per 10 grams on the MCX.

Meanwhile, the most-traded June contract climbed by Rs 2,079 or 2.14 per cent to touch a record high of Rs 99,358 per 10 grams.

Analysts said the surge in the precious metal was sparked by concerns surrounding US monetary policy, after President Donald Trump unveiled plans to overhaul the Federal Reserve.

According to HDFC Securities’ Senior Research Analyst (Commodities) Saumil Gandhi, the gold prices in 1990 was quoted at Rs 3,200 per 10 grams, and if we look at the price at the end of 2024, it was at Rs 77,913 per 10 grams.

"If we calculate the last 34-year CAGR return, it rounds to nearly 9.80 per cent, and...the gold's performance from the start of 2025 to April 21, it has delivered approximately a 26.20 per cent return," he said.

Further, he noted that the precious metal prices have successive record highs last year as well as this year which was driven by luring inflows to exchange-traded funds -- as the prospect of widespread economic disruption due to trade war bolstered haven demand. Massive central bank purchases, robust demand in Asia, and Federal Reserve monetary easing, Gandhi added.

In the international markets, gold futures jumped by USD 83.76 per ounce or 2.44 per cent to establish a record high of USD 3,509.06 per ounce.

Later, it pulled back from the record level to trade at USD 3,491.25 per ounce, up by USD 65.95 or 1.93 per cent.

"Gold prices crossed USD 3,500 per ounce levels in the international markets for the first time and also crossed 97,000 levels in the domestic markets amid uncertainty in the global financial markets and escalating US-China trade war continue to support prices of precious metals," Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.

On Monday, Trump reiterated his call for the Federal Reserve to cut interest rates, saying the American economy could slow down if the Fed does not cut interest rates immediately.

Gold showed very high price volatility amid uncertainty in the global markets. The dollar index slipped to 3-year lows after the US President Trump and Federal Reserve Chair Jerome Powell's tussle over interest rate cuts, Kalantri said.

On Friday, White House economic advisor Kevin Hassett said that President Trump and his team were continuing to study whether they could fire Fed Chair Jerome Powell.

Last week, Fed Chair Jerome Powell said that the 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.