The price of gold has crossed the one lakh rupee mark. On Tuesday, April 22, 2025, for the first time, gold prices touched ₹1,01,350, excluding GST, TCS, and other taxes. It is important to note that GST on gold in India is 3%, which means that for a price of ₹1,01,350, the GST comes to ₹3,040.50.

Out of the total GST, CGST is 1.5% (₹1,520.25) and SGST is also 1.5% (₹1,520.25). This means that GST on gold adds more than ₹3,000 to the price. When other taxes are considered, the price of gold may even rise to ₹1,10,000.

There are four main reasons for gold prices crossing the ₹1 lakh mark. Firstly, there is a decline in the value of the dollar. Secondly, the increasing trade war between the US and China is making investors look for safe investments, with gold being a preferred choice. Thirdly, there has been a significant increase in US bond sales. Finally, the low US Consumer Price Index and measures taken by the US government to reduce interest rates and put money in the hands of people have boosted demand for gold as an investment.

Additionally, political tensions in the Middle East and leadership changes in Europe are contributing factors pushing the price of gold higher. Investments in gold-backed exchange-traded funds have also risen sharply. Countries like China, India, and Russia are increasing their gold reserves.