Yellow metal buyers will have to spend more as Gold price rises, with 24-carat gold witnessing a surge on Wednesday. Additionally, the popular choice for jewelers, 22-carat gold, prized for its durability, was priced at Rs 80,110 for 10 grams. The price of 24-carat gold too surged on Wednesday, with 10 grams of it selling at Rs 87,390, according to Good Returns.

Gold prices are continuously hitting new heights and touching record high levels. There is much wider talk in the town that when will the rates hit Rs 1 Lakh per 10 grams mark. Subhash Chandra Garg, former finance secretary of India, in a recent interview with News24, hinted that when could the gold prices shoot up to Rs 1 Lakh Per 10 Grams.

When Will Gold Price Touch Rs 1 Lakh Per 10 Grams?

Subhash Chandra Garg said, “India’s gold rates are driven by immense demand, but gold is largely imported. As a result, gold prices in India are determined by three key factors: the global gold price in dollars, customs duty imposed by the government, and the profit margin added by jewelers and other intermediaries.”

“In the Budget 2024, presented in July, the government slashed the total customs duty on gold from 15% to 6%. If the government increases the customs duty on gold to 10%, 15%, or 14% in budget 2025, the trade and industry will promptly pass on this additional cost to consumers, leading to a rise in gold rates,” he further said. Garg said that in this case, gold prices may shoot up to Rs 1 lakh per 10 grams in very less time, however, the gold duties were not raised to that levels.

However, Garg also gave an idea when the rates could hit Rs 1 lakh mark, if the duties are kept unchanged. He said, “If the duty remains unchanged, it may take around six months to a year for gold prices to reach that higher level.” “Gold prices are primarily driven by international prices, not just duties,” Garg concluded.