Gold prices in India may fall below ₹1 lakh per 10 grams despite a strong performance in 2025, amid global uncertainties triggered by the Donald Trump administration.
According to recent trends, gold has topped out after reaching a peak of ₹180,779 per 10 grams on the Multi-Commodity Exchange (MCX).
On Friday, MCX gold closed at ₹156,200 per 10 grams — down ₹24,500, or 13.50 per cent, from its record high. Internationally, COMEX gold finished at $5,046.30 per ounce — 10.50 per cent below its peak of $5,626.80 per ounce.
International experts attribute the uncertainty to reports that Russia is considering a return to trading in US dollars with the United States.
Both Russia and the US have hinted at cooperation on the exploration, extraction, and sale of critical minerals despite ongoing sanctions imposed by Washington.
While President Vladimir Putin has not officially confirmed the move, his official circles have repeatedly expressed interest in collaborating with the US on technology, trade, and scientific exploration.
While China is aggressively pushing to replace the dollar in global trade through continued gold purchases, Russia’s potential return to dollar-based trade would undermine these efforts and exert downward pressure on gold prices.
Although Russia has not confirmed the reports, it has also not issued any rebuttal to international media coverage.
Market experts warn that gold prices could witness a steep fall if the US–Russia trade and tariff war initiated by President Trump last year ends this year with Russia re-entering the dollar payment system.
Anuj Gupta, a SEBI-registered market expert, said, “Ever since Donald Trump entered the White House last year, central banks across the world started buying gold to counter Trump’s tariffs. This created a significant demand-supply imbalance, leading to higher prices.
The central banks, especially of the BRICS members, continued buying gold aggressively, which further fuelled the gold price rally across the world.”
According to a 2026 internal Kremlin memo — reviewed by several media outlets and reported by agencies — Russia is keen on returning to the dollar trade system and is currently reviewing plans as a potential partnership with President Donald Trump.
Russia is reportedly seeking to enhance economic alignment with the United States, centred on fossil fuels, natural gas, offshore oil, and critical raw materials.
If a US–Russia deal materialises, gold prices are likely to see a sharp decline as the dollar strengthens its position as a stabilising force in global markets.
Also read: Precious metals jittery ahead of US GDP data
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