Gold Crosses ₹1.10 Lakh per 10 Grams for the First Time in India

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By Staff Reporter | September 9, 2025

Mumbai: Gold prices in India surged to a historic high on Tuesday, September 9, with futures contracts breaching the ₹1.10 lakh per 10 grams mark for the first time ever. The rally mirrored global trends as weak US economic data, expectations of interest rate cuts by the US Federal Reserve, and a declining dollar bolstered investor appetite for the precious metal.

On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by ₹458 or 0.41%, hitting an all-time peak of ₹1.10 lakh per 10 grams. The most-traded October contract also gained ₹482 or 0.44%, scaling a new record of ₹1.09 lakh per 10 grams.

In the international market, Comex gold futures for December delivery surged to an unprecedented $3,694.75 per ounce, cementing bullion’s position as one of the strongest-performing assets in 2025.

Drivers of the Rally

The latest rally in gold is underpinned by several macroeconomic factors, particularly developments in the US economy:

Soft US Jobs Data
Recent labour market data in the US showed weaker-than-expected employment growth, heightening the possibility of a slowdown in economic momentum. This has reinforced market expectations that the US Federal Reserve will pivot towards interest rate cuts sooner than anticipated.
Federal Reserve Policy Expectations
According to market pricing, traders now expect the Fed to implement as many as three rate cuts by the end of this year, with the first cut—possibly 25 basis points—likely to be announced at the Fed’s policy meeting scheduled next week. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, thereby increasing demand.
Weaker Dollar and Falling Treasury Yields
The US dollar index has softened, while US Treasury yields have declined, further boosting the relative attractiveness of gold as an investment option.

Expert Views

Market analysts and bullion experts have highlighted the confluence of global and domestic factors driving gold to record highs.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said:

“Gold hit an all-time high, supported by mounting expectations of Federal Reserve interest rate cuts through year-end. Weak US jobs report last Friday led markets to price in three rate cuts this year, including a 25 basis-point cut at the Fed’s policy meeting next week.”

Darshan Desai, CEO of Aspect Bullion & Refinery, noted that the sustainability of this rally will depend on key data releases in the coming days.

“Gold prices are climbing to new highs, driven by expectations of faster interest rate cuts from the US Federal Reserve next week. The short-term sustainability of this rally will largely depend on the revised US jobs data due later today, as well as upcoming inflation figures later this week.”

Rahul Kalantri, VP Commodities at Mehta Equities, emphasized the broader macro picture:

“Weak US employment data, a softer dollar, and declining US Treasury yields were the key drivers behind gold’s latest rally. The trend clearly suggests investors are seeking safety in bullion.”

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), underlined gold’s role as a safe-haven:

“Global uncertainty and investor demand continue to keep gold attractive as a safe-haven asset. For Indian investors, rising prices also reflect strong underlying demand during the upcoming festive and wedding season.”

Domestic Implications

The surge in gold prices has multiple implications for Indian households, businesses, and the economy:

Household Buyers: For retail consumers, especially those preparing for the festive season and wedding purchases, the sharp rise in prices will increase costs. However, it may also encourage advance buying to hedge against further increases.
Jewellery Sector: Jewellers may witness short-term demand slowdown due to high prices, but strong festive and cultural demand in the October–December quarter is expected to provide support.
Investors: For financial investors, gold remains an attractive asset class for portfolio diversification. Gold exchange-traded funds (ETFs) and sovereign gold bonds (SGBs) may see fresh inflows as retail investors seek to capitalize on the rally.
Wider Economy: Rising bullion imports could put pressure on India’s trade balance and current account deficit, though this may be partly offset by higher remonetization via recycling of old gold.

Outlook Ahead

Market experts believe the momentum in gold may continue in the short term, with $3,700 per ounce on Comex and ₹1.12 lakh per 10 grams on MCX being the next key resistance levels. Much will, however, depend on:

The US Federal Reserve’s policy decision next week.
Upcoming US inflation figures and revised labour market data.
Global geopolitical risks and crude oil price trends.

While the rally offers significant upside potential, analysts caution that volatility could rise in the weeks ahead. For retail investors, systematic allocations via gold ETFs or sovereign gold bonds remain a prudent approach rather than chasing momentum with lump-sum investments.

Conclusion

The crossing of the ₹1.10 lakh per 10 grams milestone marks a historic moment for gold in India, underscoring the metal’s enduring appeal as a hedge against uncertainty. Whether as jewellery, investment, or a safe-haven, gold’s glitter continues to shine brightly in the eyes of Indian households and global investors alike.

With both domestic and global drivers aligning in its favour, bullion may well remain the star performer in the commodity space through the rest of 2025.