Gold Nears ₹1 Lakh: One-Day Surge Stuns Market and Sparks Investor Buzz

Gold prices witnessed a sharp jump on April 21, 2025, with the rate nearing ₹1 lakh per 10 grams. The price surged by ₹1,650 in a single day, creating a wave of concern and curiosity among investors and buyers alike.

What Caused the Sudden Rise in Gold Price?

There are multiple reasons behind the steep hike in gold prices. The primary factor is rising geopolitical tension in the Middle East, which has pushed investors globally toward the safety of gold. The ongoing conflict has affected oil prices, further adding to inflation fears and boosting demand for gold as a hedge.

Currency Fluctuation and Global Market Impact

Another significant reason is the weakening of the Indian Rupee against the US Dollar. Since gold is imported, a weaker rupee directly increases the landed cost of gold in India. Additionally, a rise in international gold prices due to strong buying by central banks and ETFs has influenced the Indian market.

Investors Turn to Safe-Haven Asset

With uncertainty in global markets and stock volatility, both retail and institutional investors are increasing their allocation to gold. This flight to safety has triggered more buying, thereby pushing the price higher.

What Does This Mean for Buyers and Investors?

For those looking to buy gold for personal use, this surge may bring hesitation. However, for investors, the upward momentum may offer short-term gains. Experts advise watching the market closely and avoiding panic buying during sudden spikes.

Future Outlook for Gold Prices

Analysts believe if global uncertainties continue, gold prices may breach the ₹1 lakh mark soon. On the other hand, any signs of peace or economic stability could bring some correction. Buyers are advised to stay updated and consider long-term goals before making investment decisions.