The dollar index falls as gold crosses ₹1-lakh due to tariff tension.

• Gold prices soared above the psychological mark of ₹1 lakh per 10 grams for the first time ever on Tuesday.

• Spot price of gold was quoted at ₹1,01,245 for 24 carat per 10 gram, while future gold was proved at ₹99,000 per 10 grams.

• The spike mirrors the rally in gold prices during the first wave of COVID-19, when it broke the ₹50,000-mark for the first time in July 2020.

• This price level is significant for India, the second largest gold consumer, mostly by household buyers, followed by China.

• This year, gold prices have surged 30% and the rally has sustained for 128 weeks, indicating further rise till some clarity is established.

• The rally is driven by reserve accumulation, geo-political uncertainty, and comparison of past rallies.

• The short-term outlook on gold will remain strong if trade tension escalates between the U.S. and China.