Gold price today: Rs 1 lakh mark surpassed

Gold prices have surged to unprecedented levels today, June 13, 2025, with domestic prices crossing the Rs 1 lakh per 10 grams mark for the first time ever. This milestone comes amid escalating geopolitical tensions in the Middle East and growing expectations that the US Federal Reserve may soon cut interest rates.

Domestic gold prices

As of today, the price of 24-carat gold in India has reached Rs 1,00,403 per 10 grams, marking a 2 per cent increase from the previous day. This surge is attributed to a weakening rupee and strength in international gold markets. The exchange rate at the time was $1 = Rs 85.8140 

Global gold prices

Internationally, gold prices have also hit new highs. Spot gold rose 1.3 per cent to $3,427.36 per ounce, and US gold futures climbed 1.4 per cent to $3,448.70. The metal has gained over 3.5 per cent this week alone.

Factors driving gold prices

Several factors are contributing to the rise in gold prices:

• Geopolitical tensions: Israel's recent airstrikes on Iranian targets have escalated tensions in the Middle East, prompting investors to seek safe-haven assets like gold.
• US inflation data: The US Consumer Price Index for May 2025 increased by 0.1 per cent month-over-month and 2.4 per cent year-over-year, indicating moderate inflation.
• Fed rate cut expectations: The cooling inflation data has led markets to anticipate that the Federal Reserve may cut interest rates sooner than expected, making gold more attractive as an investment.

Investment implications

With gold prices at record highs, investors should exercise caution. While gold remains a reliable hedge against inflation and currency fluctuations, entering the market at elevated levels carries risks. Diversifying investments and considering long-term strategies are advisable.

If you're looking to allocate your savings wisely and diversify beyond gold, Value Research Fund Advisor can help you build a robust mutual fund portfolio tailored to your financial goals.

Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.