Gold Breaches Historic Rs 1 Lakh Mark on MCX: What’s Fueling the Record Rally?

In a historic development, gold futures on the Multi Commodity Exchange (MCX) crossed the Rs 1 lakh mark for the first time ever. As per media reports, domestic gold futures went up by 2% to touch Rs 1,00,403 per 10 grams in early trade, up by Rs 2,011 from the previous close.

For the uninitiated, the Multi Commodity Exchange (MCX) is a trading platform where different types of commodities, including gold, are bought and sold.

Factors driving up prices

Experts point out that the rally has been driven by a combination of international and domestic factors. The most prominent one is the escalating conflict between Israel and Iran, which has renewed investor interest in safe-haven assets like gold. The geopolitical uncertainty has created ripples across markets, pushing bullion prices higher.

In the domestic market, a weakening rupee and a softer US dollar have further added to the upward movement. A declining rupee has pushed up the landed cost of gold, while a weaker dollar has enhanced gold’s appeal globally.

Meanwhile, international bullion has breached the $3,400 per ounce level, mirroring strong demand in worldwide markets.

What is driving the momentum further

Speculation around the US Federal Reserve’s policy is also expected to further increase gold's prices. Softer inflation data and rising jobless claims in the US have raised hopes that the Fed may pause its rate hikes, adding further momentum to gold’s rise.

In India, strong inflows into gold ETFs and bullish technical indicators have prompted investors to continue their investments in the yellow metal.

Also Read: Gold Price Today: Will Gold Hit Rs 99K After Breaking Resistance? See Latest Prices In Delhi, Mumbai, Chennai & More | Republic World

Gold Prices in India

Early this week, gold prices in India surged sharply, following a strong trend in global markets. In Delhi, 24-karat gold climbed Rs 330 to reach Rs 98,930 per 10 grams, up from Rs 98,600 on Friday, according to the All India Sarafa Association. Gold of 99.5% purity also went up by Rs 300 to Rs 98,400 per 10 grams.

The price of the yellow metal in India today is Rs 10,140 per gram for 24-karat gold, Rs 9,295 per gram for 22-karat gold, and Rs 7,605 per gram for 18-karat gold (also called 999 gold). The current price of 24-carat gold in India is Rs 1,00,190 per 10 grams, which is a gain of 1.86% from its previous close.