Chennai: Gold prices in the Indian spot market moved into six-digit number after crossing Rs 1 lakh per 10 gm on Tuesday – 20 years after it entered the five-digit territory. Since 2005, the gold has appreciated by 1200 per cent and seen the highest yearly gain of 33 per cent so far in 2025, the highest gain since 1980s. The latest bull run which started in 2022 has seen gold rising 80.5 per cent.
In the Delhi bullion market gold opened at Rs 1,01600 per 10 gm after falling short by Rs 50 to get to the six-digit level on Monday. In the MCX, prices touched a high Rs 99,358 and in the international market prices made a high of $3498 per troy ounce.
Gold was priced Rs 10,000 in May 2006. It took 14 years for gold to climb Rs 50,000 level by 2020. The latest bull-run that started in 2022 saw gold moving up from Rs 55,000 to over Rs 1 lakh in three years.
Compared to other asset classes, gold has given the highest return since 2005. While gold has appreciated 1200 per cent from Rs 7638 per 10 gm on MCX, compared to 814 per cent gain in Sensex and 648 per cent return in silver.
“Similar to other asset classes gold also has seen corrections in between, but the prices have not witnessed any free-fall till now, which makes the yellow metal a reliable asset class,” said Ajay Kedia, MD, Kedia Commodities.
Gold has gained 33 per cent so far in 2025, the biggest rally since 1980s. The second biggest yearly gain was witnessed in 2007 – 31 per cent, followed by 29 per cent in 2010 and 27 per cent in 2024. Years like 2002, 2006, and 2009 delivered 24 per cent returns, highlighting a mini bull era during that decade.
“The latest rally started in 2022 when the economy was in bad shape after the pandemic. Apart from the Russia-Ukraine war, de-dollarization, gold-buying by the central banks, increased purchases by gold-backed ETFs and the interest rate cuts by the central banks supported gold,” said Kedia.
However, at the centre of all these developments was the move by emerging economies to cut their dependence on the US dollar. The heavy debt on the US economy has diminished their trust on US treasury bonds and the dollar. The economic sanctions by the US on several countries, including Russia, has forced the emerging markets to de-dollarise their reserves. The US dollar has weakened 12 per cent since Donald Trump was elected back to power.
The tariff war, which triggers inflation risk and consequent recessionary concerns are currently fueling the sky-rocketing of gold prices.
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