With Trump's tariffs looking to impact global trade, it remains to be seen whether gold will reach Rs 1 lakh this year. (FE Online)
Gold has been on quite a ride lately, jumping from Rs 25,000 to Rs 84,300 in just over a decade.
Gold hit the Rs 25,000 mark for the first time in August 2011, and the Rs 50,000 mark for ten grams of gold was surpassed in July 2020.
It took 108 months for the gold to move from 25,000 to 50,000, but it only took 48 months to reach the 75,000 milestone from 50,000 levels. In September 2024, the price of gold hit Rs 75,000. The 24 carat gold rate today in India is Rs 8,430 for 1 gram.
The next big milestone for gold is the Rs 1,00,000 level. The question is whether gold will reach the Rs 1 lakh mark in 2025.
If gold is to reach Rs 1 lakh, it must rise by only 13.5% from its current level. Possible? Let’s see.
The world is changing fast, particularly since Trump took office again in January. Trump’s tariff-related policies are generally predicted to be inflationary. Add to this the current global uncertainties, and it would suggest that the gold price rally is unlikely to end anytime soon.
We spoke to Colin Shah MD, Kama jewelry, to get a perspective. Colin says “Trump’s tariff threats have fueled economic uncertainty, boosting gold’s safe-haven appeal and driving prices upward. With geopolitical tensions, potential US tariffs, and economic slowdown concerns, gold is poised to scale new highs in 2025 as investors seek safe-haven assets.”
However, there are contrasting views as well. Dr. Renisha Chainani, Head–Research, Augmont says, “Most of the uncertainty related to tariffs is discounted in the prices, and it seems unlikely that this milestone would be achieved this year.