In a glittering turn of events, gold prices moved past the psychological mark of Rs 1 lakh per 10 grams in the retail markets in India on April 22, a first time in history. Side-by-side, gold futures also scaled a new peak today.
The June contract of gold futures also stood at a kissing distance of the Rs 1 lakh-mark, while sitting at its all-time high of Rs 99,378 per 10 grams today, on the Multi Commodity Exchange.
Meanwhile, Chinese gold Exchange Traded Funds recorded inflows of 29.1 tonnes in the first 11 days of April, Kaynat Chainwala, AVP-Commodity Research at Kotak Securities had said in a note.
Gold is glimmering again, as investors rush to the timeless safe haven amid Trump’s tariff tantrums and deepening fears of a full-blown US-China trade war. More than any other commodity, the safe haven asset dances to the tune of human emotion, driven not just by markets, but also by sentiments. As renowned American investor, Peter Lynch aptly put it, gold isn’t just about economics, it’s about psychology.
Taking this forward, Kotak Mahindra Bank Founder Uday Kotak said that the performance of gold over time highlights that the Indian housewife is the smartest fund manager in the world. “Governments, central banks, economists, who support pump priming, high deficit funding, may need to take a leaf from India, a net importer of store of value forever,” Uday Kotak said in a post on social media platform X on Tuesday.
The charm of gold in Indian households was also reflected in a December report of the World Gold Council Report which revealed that the gold held by Indian women topped the combined official reserves of the top five countries-- the US, Germany, Italy, France and Russia.
“Gold is a highly liquid asset, which is no one’s liability, carries no credit risk, and is scarce, historically preserving its value over time,” the international gold trade association said in its 2025 strategy report. Diverse sources of demand--investment, a reserve asset, gold jewellery, and a technology component also aid the yellow metal.
On the global front, the yellow metal futures breached another psychological mark of $3,500 for the first time ever on COMEX today. Goldman Sachs expects the yellow metal to reach $4,000 per ounce by mid-2026, according to an ETNow post on X.
On MCX, the gold has surged 9.7% since Trump's April 2 tarrif announcements that had wrecked global financial markets.
