Why Gold Price Is Increasing Will Rate Of 10 Gm Gold Reach Rs 2 Lakh

(Catch all the Personal Finance News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to ET Prime and read the ET ePaper online. Gold prices continue their record-breaking rally, with spot rates climbing to an all-time high of $3,300 per ounce. Domestically, MCX gold futures surged to a historic high of ₹95,000 per 10 grams, reflecting the strength of the global uptrend. 24K gold traded at ₹95,170 per 10 grams, while 22K gold stood at ₹87,190 per 10 grams in the domestic market. In a significant revision, Goldman Sachs has raised its gold price forecast to $3,700 per ounce by the end of 2025, citing robust investor demand and sustained central bank purchases.

The investment bank also flagged a potential high-risk scenario where gold could touch $4,500 per ounce, should global macroeconomic conditions deteriorate sharply. As geopolitical risks escalate and economic indicators remain volatile, gold is once again cementing its position as a preferred safe-haven asset. Here’s a closer look at the five key factors driving the current surge in gold prices. Gold prices surged to fresh all-time highs this week, propelled by heightened global economic uncertainty, US-China trade tensions, rising US recession risks, weakened dollar, robust central bank amping gold reserves, and increased inflows into... Gold’s latest rally is closely tied to recent weakness in the U.S. dollar, which has made the precious yellow metal more attractive to global investors.

The U.S. dollar index (DXY)—which measures the greenback against a basket of major currencies—slipped below the psychological 100 mark. A “weak dollar” refers to a decline in the value of the U.S. dollar relative to other global currencies. Gold Price Prediction: According to Chirag Sheth, Principal Consultant-South Asia at Metals Focus Ltd, the gold market is experiencing an unprecedented surge, surprising even to the seasoned analysts. Get the latest Business News, Stock Markets, IPO Companies News, Breaking News Events on ET Now.

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Offices to be built like Passport Seva Kendras, targeting coverage of 100 crore people | Everything EXPLAINED In 2025, gold prices have hit unprecedented levels, capturing both investor focus and global headlines. One would expect this sharp surge to be a fleeting market trend, but it actually is a result of a confluence of economic, geopolitical, and monetary factors. For a country like India, where gold is deeply rooted in cultural traditions and monetary forces, the abnormal price hike is more than just a statistic. It impacts households, businesses, and the broader economy. With every headline screaming questions like, “why gold price is increasing” or “why gold rate is increasing in India” it’s crucial to examine the underlying causes of this sustained price hike.

This blog dives into the trends, the numbers, and the gold price rise reason dominating the market conversation. It also addresses the pressing question: will gold price increase further in the months ahead? But before that, let’s understand the gold price trends in India over the last few years. According to a 1st April 2025 Forbes India report, over the past five years, gold prices in India have shown a consistent upward trajectory: Context: Gold prices in India have hit historic highs, breaching ₹1 lakh per 10 grams on MCX, driven by global stagflation concerns, US-China tensions, and rising central bank demand, including the RBI. <img fetchpriority="high" decoding="async" class="aligncenter size-full wp-image-323700" src="https://www.insightsonindia.com/wp-content/uploads/2025/04/Gold-Prices-Rise.jpg" alt="" width="300" height="168" srcset="https://www.insightsonindia.com/wp-content/uploads/2025/04/Gold-Prices-Rise.jpg 300w, https://www.insightsonindia.com/wp-content/uploads/2025/04/Gold-Prices-Rise-150x84.jpg 150w" sizes="(max-width: 300px) 100vw, 300px" />

Gold prices have been displaying an upward trend and have soared to a record high of Rs 90,000 on Friday, backed by strong demand and favorable global trends. Investors are now keen to know when gold will breach the Rs 2 lakh mark. Assuming that the yellow metal has a growth rate of 11.2%, the time it will take for gold to reach Rs 2 lakh can be estimated. Using the Rule of 72, which is a formula used for estimating the doubling time of an investment, the time frame for the same can be calculated. Dividing 72 by the growth rate of 11.2% gives an approximate time frame of 6.43 years for gold to double and reach Rs 1.8 lakh. So the safe-haven asset will touch Rs 1.8 lakh by 2031 and Rs 2 lakh by 2033.

According to an ICICI Bank Global markets report, gold prices could in all likelihood touch Rs 87,000 to Rs 90,000 per 10 grams in the first half of 2025, given the current environment of... According to the report, moving forward, "local gold prices are expected to trade with an upside bias in the Rs 87,000 per ten grams to Rs 90,000 per ten grams range in 1H2025 and... Gold has long been revered by Indian households for its ability to deliver impressive returns, outshining many other investment options. As gold prices soar to new heights, investors ponder when the precious metal will reach the coveted Rs 1 lakh or even Rs 2 lakh mark. Delving into historical data on gold movements offers insights into this speculation and guidance for investors. Over the past nine years, gold prices have nearly tripled, starting from Rs 24,740 in 2015.

A similar pattern was observed in the preceding nine-year period, where prices tripled from Rs 8,250 in 2006. Taking a broader view, it took roughly 19 years for gold prices to triple from Rs 2,570 per 10 grams in 1987, with preceding tripling cycles spanning approximately eight and six years, according to... Sovereign Gold Bonds Investors Alert: RBI Fixes Premature Redemption Price, Check Here According to The Times of India report, analysts anticipate that if this tripling trend persists, gold could surpass the Rs 2 lakh per 10 grams milestone. However, the timeframe for reaching this level remains uncertain. Jateen Trivedi, VP Research Analyst at LKP Securities, suggests that given recent trends, gold prices might hit Rs 2 lakh within the next 7-12 years.

Others, like Surendra Mehta, National Secretary of the India Bullion and Jewellers Association, express even greater optimism, foreseeing gold prices tripling within the next six years. Mehta cites escalating geopolitical tensions and de-dollarization as potential catalysts for this surge.

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