Amid Trump-Fed turmoil, gold crosses ₹1 lakh mark before Akshaya Tritiya

Gold prices reached an all-time high on Tuesday (April 22), touching ₹1 lakh per 10 grams in India, driven by escalating fears over US President Donald Trump's public friction with Federal Reserve Chair Jerome Powell.

The yellow metal crossed a record $3,500 per ounce in global markets, reflecting investors' flight from riskier assets towards safer assets like gold amid deepening concerns over uncertainty in the global financial markets and Trump's foreign policies.

Indians — famous for their gold savings — may feel the pinch the most ahead of Akshaya Tritiya.

Also Read: Gold prices soar on US-China tariff war, cross Rs 98,000 in India to set new high

Gold prices spike

The impact of the increasing gold prices was quickly felt in Indian cities. 24-carat gold costs ₹10,150 per gram in Delhi, and ₹10,135 per gram in Mumbai, Chennai, and Kolkata.

But pure gold is not used in jewellery. Prices of 22-carat gold, commonly used for jewellery, hovered around ₹9,290–₹9,305 per gram.

This dramatic rise, just ahead of Akshaya Tritiya — an auspicious time for buying gold — may dampen festive purchases, especially for India’s middle-class and housewives known for their gold savings.

Also Read: India beats China to become largest gold jewellery consumer

Trump vs Powell

Global uncertainties over Trump's foreign policies have worried the markets, leading investors to move towards safer havens like gold.

Fuelling the rally are Trump's repeated calls to reduce interest rates as against Fed chief Powell's decision to keep it unchanged until there is more clarity on the impact of Trump's tariffs.

The President has warned that the US economy could face a slowdown if rates are not cut.

Talk of Powell’s possible dismissal has further spooked investors, sending US stocks, bonds, and the dollar tumbling — and gold soaring.

Tim Waterer, chief market analyst at KCM Trade, noted that “tariff worries and the Trump-Powell drama have left investors rushing to safer assets like gold.”

Market reactions

On the Multi Commodity Exchange (MCX), the most-traded June delivery contracts of the precious metal zoomed by ₹1,899 or nearly 2 per cent to hit a record high of ₹99,178 per 10 grams in the initial trade.

Also Read: Gold prices are sparkling; read this before you rush to buy some

In addition, the October contract breached the ₹1 lakh mark for the first time on the MCX, jumped by ₹2,000 or 2 per cent to hit a record high of ₹1,00,484 per 10 grams on the bourse.

Globally, spot gold touched a record $3,494.66/oz before settling slightly lower at $3,482.26 an ounce.

Analysts warn of continued volatility as Trump’s monetary policy unveiled plans to overhaul the Federal Reserve. For Indian consumers, though, the glitter may soon come at a much higher cost.