Gold Rush 2025: Will Prices Soar to ₹1 Lakh? Experts Weigh In

With gold prices climbing steadily, investors and buyers are now questioning whether the yellow metal could soon touch ₹1 lakh per 10 grams in India. As of April 2025, domestic prices are hovering above Rs 90,000 per 10 grams—an all-time high—fueled by a mix of global and local economic pressures.

Why is the yellow metal booming?

Internationally, gold has crossed $3,100 an ounce, driven by mounting geopolitical tensions and persistent uncertainty in the global economy. Experts suggest this rally differs from previous spikes—ongoing trade wars, aggressive tariff hikes, and a breakdown in diplomatic cooperation are pushing investors toward safer assets like gold.

Central banks, especially in China and Russia, have been accumulating gold reserves at a rapid pace, tightening global supply and adding momentum to the price surge. So far in 2025, gold has gained more than 21%, boosted further by rising investments in gold-backed ETFs and continued demand from institutions seeking financial stability.

“Gold prices have climbed sharply due to the escalating trade war. Funds are moving out of other assets into gold. The U.S. is also experiencing stagflation, which is adding support to bullion. Central banks are clearly shifting away from the dollar and into gold,” said Dr. Renisha Chainani, Head of Research at Augmont.

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Global market scenario

On Friday, gold prices jumped nearly 2%, crossing the $3,200 threshold for the first time, according to Reuters. Spot gold reached a new record of $3,237.56 before settling at $3,227.39 an ounce. U.S. gold futures also rose over 2%, closing at $3,246.30.

The latest spike follows China’s decision to increase tariffs on American goods to 125%, a countermeasure to U.S. President Donald Trump ’s hike to 145% on Chinese imports. The trade standoff has amplified fears of a global economic slowdown, sending investors scrambling for safe-haven assets.

UBS analysts expect the rally to continue, projecting gold could climb as high as $3,500 an ounce in the coming months.

Indian market trends

Back home, gold remains in high demand, especially during festivals and wedding seasons. But the rising inflation and market volatility are prompting many Indians to turn to digital gold, gold ETFs, and sovereign gold bonds as more flexible investment options.

Will Prices Reach Rs 1 Lakh?

Global financial institutions are adjusting their gold forecasts. Goldman Sachs anticipates prices could hit $3,300 per ounce by year-end, while Deutsche Bank has revised its estimate to $3,139. If these projections materialize—and if the Indian rupee weakens—domestic gold prices could indeed approach the Rs 1 lakh mark.

“Gold rates have already jumped about 20% over the past year. It may not touch Rs 1 lakh this year, but if the trade war drags on, prices could shoot up even more,” Chainani added.