With the international gold prices crossing the $3,400/ounce-mark on Monday, the domestic prices are set to cross the psychological mark of Rs 1,00,000/10 grams on Tuesday as dollar continued to face headwinds — down to a three-year low today against the key other currencies--and the new escalation in the tariff war. In Delhi the metal jumped to Rs 99,800 on Monday.
The safe haven metal was trading at $3,482/ounce (an ounce is 28.35 grams) at 1.03 am NY time on Tuesday on the Chicago Mercantile Exchange, which is 5% higher than the previous close.
According to the All-India Sarafa Association, the yellow metal of 99.9% purity reached Rs 99,800/10 grams on Monday on weak dollar and uncertainties over US-China trade war driving demand. Gold of 99.5% purity hit a fresh peak of Rs 99,300/10 grams in the local market.
So far this year, the yellow metal prices have risen Rs 20,850, or 26.41% since December 31. The metal had rallied 22% in 2024. And this came at a time when the metal was roaring—gold rose 15% in 2023, 22% in 2024 and a whopping 26.5% so far in 2025!
Renisha Chainani of Augmont Gold, told TNIE that she expects the next resistance level for gold at $3,500/ounce.
From a monthly comparison, the metal was fetching a low $1,725/ounce in April 2021, which rose to $1920 in April 2022, further rose to $2000 in April 2023, $2,350 in April 2024 and a whopping $3,368 in April (16) 2025, which almost 90% rally in just five years.
Meanwhile, silver prices also appreciated Rs 500 to Rs 98,500/kg. The white metal had traded flat at Rs 98,000 on Friday.
"This year, gold and silver prices have experienced significant movements due to ongoing trade tensions, rate cut expectations, geopolitical uncertainties and a weakening dollar. So far, gold has soared over 26%, including a 6% gain since April 2 tariff announcement by the US," said Satish Dondapati, a fund manager at Kotak Mahindra AMC.
On the Multi-Commodity Exchange, gold futures for June delivery jumped Rs 1,621, or 1.7%, to touch a fresh high of Rs 96,875.
"There has been an increased buying activity among ETF investors, while upcoming festive demand in India is seen fuelling additional support," said Pranav Mer, vice-president, commodity & currency research at JM Financial Services.
The dollar fell to a three-year low and safe-haven buying intensified following US president Donald Trump issued a fresh threat to fire Federal Reserve chairman Jerome Powell.
“White House economic adviser Kevin Hassett said on Friday that Trump and his team are still looking into whether they can remove Powell,” according to international media reports, sending the dollar index to a three-year low of under 98.