Gold Touched Rs. 100000, should you buy gold amid rising prices

On April 22, 2025, gold briefly crossed the Rs 1 lakh mark in India and is still close to this level. On the oocassion of Akshaya Tritiya, a day considered lucky for buying gold in India, prices may go even higher. However, with gold prices already high, many people are wondering if it’s a good idea to buy gold this year.

Why Gold Prices Are Rising:

Experts say that gold prices are going up because of global issues, including US President Donald Trump‘s unpredictable decision to impose tariffs on other countries.

An expert says, gold prices have been rising mainly due to global economic uncertainties caused by several events. The main factor is the tariffs imposed by Trump and the US-China trade war. Additionally, tensions in the Middle East and Eastern Europe have also contributed to the uncertainty, making gold a popular safe investment, which has driven up its price.

Other experts contend the recent spurt in gold prices is on account of a combination of uncertainty in the world economy, political tensions, and the weakening of the rupee. During periods of uncertainty, investors like gold as a safer investment option. Further, central banks globally, including those in emerging economies, have been increasingly acquiring gold as an insurance against inflation and currency fluctuations. All these have pushed gold prices and boosted demand.

As per a report, the Reserve Bank of India (RBI) purchased a total of 57.5 tonnes of gold in the financial year 2024-25. This was the second-largest amount of gold the central bank has bought in a financial year since it began adding to its gold reserves in December 2017. As of March 31, 2025, the RBI held a total of 879.6 tonnes of gold.

Experts say gold has performed very well since the beginning of the year, going up by over 21% and hitting new record highs more than 20 times. Worries about the global economy and the growing US-China trade war are pushing prices up. A weaker US dollar has also added to this rise. Overall, investors are expecting more global risks, especially due to trade tensions and fears of slow economic growth with high inflation (stagflation), which could push gold prices even higher.