Chennai: Gold prices in the spot market in India entered six figures after surpassing Rs 10,000 per 10 grams in 20 years after entering five-digit territory on Tuesday to 20. Gold has appreciated 1200% since 2005, with a highest annual return so far in 2025, the highest since the 1980s. The latest bull run in 2022, with gold rising 80.5%.
In the Delhi gold bar market, gold reached six-figure level on Monday after falling Rs 50 on Monday. In MCX, the price hit Rs 99,358, and in international market prices, the price is as high as US$3,498.
Gold was priced at Rs 10,000 in May 2006. By 2020, it took 14 years for gold to climb Rs 50,000. The latest bull run time began in 2022, with gold rising from Rs 55,000 to over Rs 10,000 in three years.
Compared with other asset classes, gold has the highest return rate since 2005. Although gold accounts for 1200% per 10 grams of Rs 7638 per 10 grams on MCX, Sensex has a growth rate of 814% and silver has a return of 648%.
“Gold similar to other asset classes has also seen corrections between the two, but so far the price has not seen any free falls, which makes gold metal a reliable asset class.”
Gold has so far risen 33% in 2025, the largest rally since the 1980s. The second largest annual earnings were seen in 2007, followed by 31%, followed by 29% in 2010 and 27% in 2024. The 2002, 2006 and 2009 years earned 24% returns, highlighting the minibull era in that decade.
“The latest rally started in 2022 when the economy was in poor shape, besides the Russian-Ukrainian war, the purchase of gold purchased by central banks, increased purchases of gold medal ETFs and the reduction in interest rates supported by central banks,” Cadia said.
But the center of all these developments is the reduction of dependence on the US dollar in emerging economies. Heavy debt to the U.S. economy has reduced their trust in U.S. Treasury bonds and the U.S. dollar. The U.S. economic sanctions on several countries, including Russia, have forced emerging markets to deprive their reserves. The dollar has weakened 12% since Donald Trump was elected as the leader.
The tariff war triggers inflation risks and the ensuing recession problems are currently fueling the sky of gold prices.
