Gold Rush 2025: Will Prices Hit Rs 1 Lakh Sooner Than Expected?

Gold prices have been rising over the past few years, but since the start of 2025, they have risen through the roof due to the US tariff war and rising trade tensions with China. The gold price has increased by about 25% since the start of 2025.

As on April 19, 2025, gold rates in India are almost at historic Rs 1 lakh per 10 grams level. The reasons behind the increase are global economic uncertainties, hawkish U.S. trade policies, and rising purchases by central banks. On April 16, 2025, 24-carat gold was at Rs 94,489 per 10 grams, a sharp increase from earlier days.

Will Gold Reach 1 Lakh Mark?

If US tariff negotiations are smooth, there could be some profit taking in bonds and gold, slowing down the surge in the gold price, says Motilal Oswal's analysis, while stating that the gold price would rise in the long term.

 “For larger-scale fundamentals, we still recommend bullion to buy on medium and long-term dips. For medium to long term, there is support around ₹ 91,000 and resistance around ₹ 99,000. As Motilal Oswal too concludes in his analysis, the prices to watch at COMEX are $3100 and $3400,” it stated.

Global Factors Fueling Gold Surge

Gold's rise is driven by global forces. President Donald Trump 's recent tariff measures have shaken world markets, leading to investors demanding safe-haven instruments such as gold. As a result, gold prices hit an all-time high of $3,245.28 per ounce on April 11, 2025, an improvement of 28% from November 2024.

In India, the demand for gold, traditionally, continues to be strong, particularly with the Akshaya Tritiya festival around the corner. But high prices have moderated jewelry demand, whereas investment in gold coins and gold bars is on the increase. 

Experts forecast that if this trend sustains, gold may touch Rs 1 lakh per 10 grams by the end of 2025.

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Expert Predictions and Market Outlook

Financial institutions are revising their projections against the backdrop of recent events. Goldman Sachs has increased its year-end gold forecast to $3,700 per ounce, expecting continued investor interest because of continued economic uncertainties. 

This estimate implies that the price of gold in India may cross Rs 1 lakh per 10 grams, based on currency exchange rates and prevailing market conditions.

Potential Risks For Market

While the trend is perceived to be bullish, experts warn that gold prices are volatile. Diplomatic solutions for trade conflicts or changes in central bank policies may induce price corrections. Investors are warned to remain alert and to factor in market risks before investing.

Gold's path towards Rs 1 lakh per 10 grams is a result of the intricate interplay of international and domestic forces. Although the outlook is positive, market players must remain alert to possible volatility in the gold market.