Gold scaled a record Rs 1 lakh per 10 gm in retail price for the first time on Tuesday, prompting consumers to hold on to their household reserves of the commodity amid speculation of a further appreciation sparked by continuing uncertainty in geopolitics.
Retail prices touched Rs 1,03,000 for 10 gm of gold with a 3 per cent goods and services tax (GST), an occurrence which does not augur well for sales on Akshaya Tritiya, an annual Hindu and Jain spring festival when it is considered auspicious to buy gold. Akshaya Tritiya falls on April 30 this year.
Gold prices have surged 30 per cent since the beginning of 2025. In the international market, the precious metal crossed the psychological mark of USD 3,500 per ounce on Tuesday.
Experts attributed the new all-time high attained by the yellow metal to the increasing tensions between US President Donald Trump and Federal Reserve chair Jerome Powell regarding interest rate cut. The resultant weakness in the US dollar and the continuing uncertainties around the US-China trade war were the other crucial factors. they said.
“Household gold sales in Zaveri Bazaar and in other parts of the country have halted completely. Till last night, people were selling gold for quick money,” said Surendra Mehta, national secretary of India Bullion & Jewellers Association. “The continuous surge in prices has impacted the demand for gold in volume terms. Our initial estimates indicate that there has been a drop of 40 per cent in volume terms in the first three weeks of April compared to the same period of last month. The mood in Zaveri Bazaar is not upbeat, and everybody is now waiting to see how Akshaya Tritiya sales pan out.”
Rising gold prices have also prompted jewellery retailers to reorient their strategy and place orders for lower cartage and lightweight jewellery ahead of Akshay Tritiya. Mangesh Chauhan, managing director of Sky Gold & Diamond, a listed jewellery manufacturing firm, said, “Manufacturing is now largely focused on lightweight jewellery and pieces made in 20 carat, 18 carat and 14 carat. Retailers are still placing orders, but these are in lower caratage to maintain the retail price tag at their counters. Current orders are being booked for jewellery of 7-8 grams as consumers are willing to pay for them at the retail counter.”Renisha Chainani, research head at Augmont Gold, said.
“With rising geopolitical tensions, central bank buying and the possibility of economic instability, investors may want to consider increasing their gold allocation to 10-15 per cent of their portfolio from the traditional allocation of 5 per cent to hedge against uncertainty in the market and inflation and for overall diversification.”
This, she said, was in addition to buying physical bars and coins and gold-backed financial products such as digital gold and gold exchange traded funds.
