Gold's dizzying climb and China's breathless rush after it

Gold is tearing into newer territories without a heartbeat's pause. On Monday, prices of the yellow metal touched Rs 1 lakh per 10 grams for the first time in history, defying both math and magic. Prices have surged over 26% or by Rs 20,800 per 10 grams in 2025, so far. They are gushing north of $3,500 per ounce at the time of writing. The price darts around so fast the caveat is necessary.

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As with any other commodity, events control gold prices. They go up when global economic growth slows down, and remain inversely related to the movement of the dollar index during downturns. In a similar fashion, prices get hammered down when dollar strengthens and as investors flock to bonds in good times. Currently, as it bazookas all resistance, there's a growing sentiment that the gold prices are governed no longer by economic factors, but by the whims of Chinese buyers and investors.