US economic concerns and central bank buying are fueling the global rally in gold prices

Gold prices surged to touch the psychological mark of Rs 1 lakh per 10 gm at the retail level on Monday and is likely to hurt consumer sentiment ahead of Akshaya Tritiya, a heavy purchase day for gold

The global rally in gold prices continues unabated with 2024-25 turning in returns of 39.75% — the highest in four decades. The sharp spike in gold prices, 30% over the past year, has dampened local demand for jewellery. 

Purchases for even weddings, the mainstay of the jewellery market, has been somewhat subdued, limited to light-weight jewellery.Purchases on Akshaya Tritiya, the biggest gold-buying occasion of the year, are expected to be low-key.