Gold rates at ₹1.8 lakh per 10 grams in India: Why prices are surging and what lies ahead

Gold prices in India surged to an all-time high on Thursday (January 29), tracking a powerful rally in global bullion markets as investors increased allocations to safe-haven assets amid economic uncertainty and rising geopolitical tensions.

On the Multi Commodity Exchange (MCX), gold futures for February delivery climbed 8.8% to touch a record ₹1.80 lakh per 10 grams, reflecting strong buying interest from investors and traders. The sharp move followed sustained gains in overseas markets, where gold has been setting successive record highs this week.

Internationally, gold futures on the Comex crossed the $5,600-per-ounce level for the first time, with April contracts rising to around $5,626.8 an ounce. Prices have gained more than 10% over the past few sessions, supported by persistent safe-haven demand, central bank purchases and a weaker US dollar.

Analysts said expectations of prolonged accommodative monetary policy in the United States have further underpinned the rally. The US Federal Reserve kept interest rates unchanged at its latest meeting, with Chair Jerome Powell highlighting ongoing inflation pressures and concerns over the country’s fiscal position, reinforcing gold’s appeal as a hedge against macroeconomic risks.

Geopolitical developments also kept bullion in focus after tensions escalated around Iran’s nuclear programme, prompting investors to seek protection in tangible assets such as gold.

Commenting on the broader trend, Sandip Raichura, CEO of Retail Broking and Distribution at PL Capital, said gold has moved beyond earlier price targets and appears to be on a structural bull run, driven by a fractured global landscape and rising demand for the metal as a strategic reserve asset.

Market participants are now awaiting key US economic indicators, including weekly jobless claims and producer price data, for further cues on interest rates, currency movements and the near-term direction of gold prices.