Gold Price Crosses ₹1 Lakh: Why It's Rising and What It Means for Investors
Gold prices in India have hit an all-time high, with rates crossing ₹1 lakh per 10 grams in retail markets and MCX futures soaring to ₹99,358. As economic uncertainty looms large globally, gold has once again emerged as the go-to safe haven for investors. But what’s really fueling this rally, and how should you respond?
What’s Behind the Gold Surge?
The current gold boom isn’t accidental. It’s the result of a perfect storm of global economic and political shifts:- Weakening US Dollar: The Dollar Index (DXY) has slipped below 99, making gold more attractive globally as a hedge.
- Geopolitical Unrest: Tensions from trade disputes and global fiscal instability are pushing investors towards safer assets like gold.
- Central Bank Buying & Inflation Worries: Central banks are continuing to stockpile gold, while inflation concerns keep the yellow metal in demand.
Voices Backing the Bull Run
Some of the biggest names in finance are weighing in on the surge:- Uday Kotak, Founder of Kotak Mahindra Bank, praised Indian housewives as "the smartest fund managers" for their long-standing trust in gold, especially in uncertain times.
- Robert Kiyosaki, author of Rich Dad Poor Dad, predicts gold could skyrocket to $30,000 per ounce by 2035, warning of a looming U.S. economic crisis and urging people to invest in gold, silver, and Bitcoin.
Global Forecasts Turn Bullish
Top brokerages have significantly raised their gold price targets:- Goldman Sachs: Now pegs gold at $3,700/oz by year-end.
- UBS: Expects it to reach $3,500/oz on safe-haven demand.
- Bank of America: Sees an average of $3,063/oz, with potential upside to $3,500/oz due to global risks.
- Tata Mutual Fund: Notes strong ETF inflows, reflecting institutional confidence.
Investor Takeaway: Ride the Wave or Wait It Out?
Tata Mutual Fund maintains a bullish medium-term view, backed by: - Steady central bank gold purchases
- Expected global rate cuts
- A weaker dollar
- Continued global uncertainty
However, they caution that after a sharp 25% surge in just six weeks, short-term corrections are possible, and prices could consolidate over the next few months.
Commodity expert Manoj Kumar Jain warns against short-selling for now, while Colin Shah of Kama Jewelry points out that upcoming festive demand - especially around Akshaya Tritiya - could keep prices firm, regardless of volatility.