Yellow metal buyers will have to spend more as Gold price rises, with 24-carat gold witnessing a surge on Thursday. The price of 24-carat gold too surged on Thursday, with 10 grams of it selling at Rs 86,510, according to Good Returns. Additionally, the popular choice for jewelers, 22-carat gold, prized for its durability, was priced at Rs 79,300 for 10 grams.

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

Subhash Chandra Garg, former finance secretary of India, in an exclusive interview with News24, hinted that when could the gold prices shoot up to Rs 1 Lakh Per 10 Grams.

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 said. Garg remarked 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.

Garg said, “If the duty remains unchanged, it may take around six months to a year for gold prices to reach that higher level.” Furthermore, Garg remarked that the gold prices in India are primarily dependent on international prices. He said, “Gold prices are primarily driven by international prices, not just duties.”