For the fourth straight session, the gold price today in India rose by Rs 1,899 to reach an all-time high of Rs 99,178 per 10 grams, fuelled by continued safe-haven demand.

On the Multi Commodity Exchange (MCX), the October contract breached the Rs 1 lakh mark for the first time on the MCX, jumped by Rs 2,000 or 2 per cent to hit a record high of Rs 1,00,484 per 10 grams on the bourse.

Gold in the international market also continues its upward trend on Tuesday. Gold rose more than 1.5% to trade above $3,485 per ounce on Tuesday, hitting a new record high, boosted by safe-haven buying amid escalating global trade concerns and a weaker US currency. If gold closes Tuesday’s trade above $3,500, it will be the first time it has achieved that level.

Dr. Renisha Chainani, Head – Research at Augmont says, “Gold has crossed the psychological level of $3,500 (Rs 99000) today, as the dollar fell to a three-year low below 98.

President Trump increased pressure on the Federal Reserve, calling for a dramatic rate reduction and even considering replacing Fed Chair Powell. Trump criticised Fed Chair Jerome Powell again on Monday, warning that the US economy will slow unless interest rates are cut promptly.

The comments on Powell reinforced concerns about the Fed’s independence in establishing monetary policy, as well as the outlook for US assets.

Furthermore, amidst the trade war, China accused the US of abusing tariffs and warned governments not to seek an agreement with the US that compromised Beijing’s interests.

Together, these considerations have led to strong safe-haven demand for gold, which is now up 30% this year.”

The revived interest in gold appears to have returned following President Trump’s strong message about gold on his Truth Social platform.

Trump’s take on gold sends a strong message on the ownership of gold. The post on Donald Trump Truth Social on April 20 reads – The Golden Rule Of Negotiating And Success: He Who has the gold makes the rules. Thank you!

Interesting, in a X ( formerly Twitter) post in 2013, Trump also wrote – ‘The Golden Rule of Negotiating: He who has the gold makes the rules.’

And since then, between 2013 and 2023, Russia’s reserves increased from 1,035 to 2,333 tonnes. In 2023, China’s reserves increased from 1,054 to 2,235 tonnes. Turkey’s gold holdings rose from 116 tonnes in 2013 to 540 tonnes in 2023, placing it in third position.

Central banks have been buying gold in huge quantities recently. With 8,134 tons of gold reserves as of December 2024, the United States led the world, followed by Germany. With reserves of 2,280 and 876 tons of gold, respectively, China and India are far behind.

The gold price in the international market has touched $3,485 and is nearing the $3,500 mark. Some analysts are calling for a short-term target of $3,500 for an ounce of gold. In India, the gold price today is Rs 98,920, inches away from Rs 1 lakh for 10 grams of 24 carat gold.

Over the last 12 months, gold is up by 50% and various factors look to support the prices for a higher up move.

Gold has run up a lot in the last three years. A fall in gold price from current levels cannot be ignored. “The next potential milestone for gold could be around $3,500 (approx Rs 1,00,000) if this rally continues further, but positioning may appear crowded in the short run, and technical indications suggest near-term overbought circumstances. However, one must exercise extreme caution because prices have skyrocketed in a relatively short period. If prices fall below $3,300 (approx. Rs 94,300), profit-booking can lower prices to around $3,100 (approx. Rs 90,000), says Dr. Renisha Chainani, Head – Research at Augmont.

The gold rush has also been a result of the equity market shock. Gold has consistently performed well during times of global equity market stress during the last 25 years. Historical data suggest that whenever the S&P 500 falls by more than 20%, the gold price rises sharply.

For example, during the 2008 Global Financial Crisis, the S&P 500 fell 57%, whereas gold rose 39%. Similarly, during the COVID-19 pandemic in 2020, stocks plunged 35% while gold increased 32%. The dot-com bubble followed a similar pattern, with the S&P 500 falling 49% and gold rising 21%.

Also Read: Gold Price Prediction: Gold expected to post 71% return in 2025

Currently, under the ongoing tariff war scenario, the S&P 500 has corrected almost 20% from recent highs, while gold has already risen over 25% during the same period.

The short-term outlook on gold rests on the tariff negotiations between the US and China, the threat to US Fed chief Powell’s position at the central bank, and the dollar movement.

Also Read: Who are the world’s biggest hoarders of gold? The names will surprise you