Gold prices have soared to record highs in the domestic futures market today, March 18. This is in the follow-up of heightened uncertainty over the economic impact of US President Donald Trump's tariff policies. MCX Gold for the April 4 contract reached its all-time high level of Rs 88,499 on March 18.
Moreover, international gold prices have skyrocketed to a record-breaking $3,012.05 per ounce, driven by investors seeking safe-haven assets amidst economic uncertainty fueled by Trump's tariff policies. The market's focus is now shifted to the policy outcome of the US Federal Open Market Committee (FOMC), set to take place on March 19. According to media reports, the US Federal Reserve may keep the policy rates unchanged.
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Traditionally, gold prices rise during the time of economic uncertainties. However, increased interest rates put negative impact on the yellow metal.
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When Will Gold Prices Hit Rs 1 Lakh Mark?
"The yellow metal may take two to three years to reach the Rs 1 lakh level. It has delivered a compound annual growth rate (CAGR) of around 10% over the past five to ten years. Based on this trend, gold may hit Rs 1 lakh within the next two to three years," said an analyst from Motilal Oswal.
"The possibility of gold touching Rs 1 lakh mark stems from either the international gold prices touching $3,300 an ounce and USD-INR coming at 89 levels. For the year 2025, even if the international prices were to cross this number, rupee weakness in the USDINR pair should be anywhere in the range of 88 or 89. Only with a combination of these two, we could see gold in the domestic markets crossing Rs 1 lakh, which seems unlikely for the year 2025," said NS Ramaswamy, the head of the commodity desk at Ventura.
Rahul Kalantri, VP of commodities at Mehta Equities, says that gold prices could rise to Rs 1 lakh per 10 grams in the next one to two years.
Recently, Subhash Chandra Garg, former finance secretary of India, in an exclusive interview with News24 said, "it may take around six months to a year for gold prices to reach that higher level."