Gold prices marked the fourth consecutive day of gains and pushed the yellow metal to a historic high of Rs 99,178 per 10 grams.

On the Multi Commodity Exchange (MCX), the October futures contract briefly breached the Rs 1 lakh mark, touching an all-time high of Rs 1,00,484 per 10 grams, up nearly Rs 2,000 or 2%.

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The price of 24-karat gold (999 fineness) was quoted at Rs 1,00,000 per 10 gm in the Mumbai bullion market on Tuesday, and the price of 22 karat gold was quoted at Rs 91,600 per 10 gm.

The sharp rally is being attributed to safe-haven demand, fueled by geopolitical uncertainty, central bank gold buying.

Escalating trade tensions, particularly between the US and China, have heightened market volatility. These actions have led to a weakened U.S. dollar and increased demand for gold as a safe-haven asset.

Further, the Federal Reserve’s decision to cut interest rates has made non-yielding assets like gold more attractive.

Globally, the central banks, including India and China, have also been increasing their gold reserves.

Value Research in a note had said that in 2024, global central bank gold purchases exceeded 1,000 tonnes for the third consecutive year. Notably, China’s policy shift allowing insurers to allocate up to 1 per cent of assets to gold could add approximately 255 tonnes to annual demand.

Gold prices in India generally follow international prices. In New York, the gold price is around $3,486.85 per troy ounce.