Gold prices are on a remarkable upward trajectory, leaving investors wondering if the precious metal will soon hit the ₹1 lakh mark per 10 grams. The surge comes as US President Donald Trump prepares to announce sweeping tariffs, a move he calls “Liberation Day” for the United States. But what does this mean for gold? Let’s take a closer look.
Gold’s Record-Breaking Rally
In 2024, gold proved to be a strong hedge against inflation, delivering over 20% returns. The momentum has continued into 2025.
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On January 1, 2025, gold was priced at ₹79,390 per 10 grams.
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By April 1, it had surged by ₹2,000 to hit ₹94,150 per 10 grams, marking its highest level in two months.
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The previous record one-day jump was on February 10, when gold gained ₹2,400 per 10 grams.
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On April 2, morning trade data from the India Bullion and Jewellers Association Ltd (IBJA) showed gold at ₹90,920 per 10 grams.
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In the international market, spot gold hit a fresh peak of $3,149.03 per ounce.
Why Is Gold Rising? Experts Weigh In
Analysts say Trump’s tariff policies are fueling gold’s bull run.
Chirag Mehta, Chief Investment Officer, Quantum Mutual Fund, explained:
“Since the onset of his campaign, President Trump has consistently promoted the ‘America First’ policy, with imposing tariffs on foreign nations being a central aspect of his economic agenda.”
Manoj Jain, Director, Prithvi Finmart, noted:
“Traders are waiting for US tariff announcements, but the overall bullish structure is intact for precious metals due to global uncertainty.”
Kotak Securities highlighted:
“Gold prices have surged to a record high for the fourth consecutive session due to concerns over US trade tariffs. Trump’s planned levies on all trading partners have heightened fears of retaliatory measures and global economic instability.”
Will Gold Hit ₹1 Lakh?
With uncertainty looming, analysts predict gold will remain strong in the coming months.
Prithviraj Kothari, MD, RiddiSiddhi Bullions Ltd (RSBL) stated:
“Trump tariffs will lead to stagflation and a weak dollar index in the next few months, and maybe a recession by the end of the year, which will support gold prices.”
Prathamesh Mallya, DVP-Research, Angel One Ltd, added:
“Gold has been trading in a bullish mode for quite some time as countries deal with tariff wars, economic slowdowns, and interest rate cuts.”
What’s Next for Gold Investors?
As markets brace for Trump’s tariff announcements, gold’s position as a safe-haven asset is stronger than ever. Whether prices will touch the ₹1 lakh mark remains uncertain, but the metal’s strong performance indicates that investors are betting big on gold in 2025.
