Gold prices in India witnessed a marginal rise on Sunday, with 24-carat gold trading at ₹1,25,400 per 10 grams, up from ₹1,25,000 the previous day. The price of 22-carat gold also inched higher to ₹1,14,900 per 10 grams, marking a steady upward movement amid global economic uncertainties and fluctuating demand from retail investors and central banks.
This increase comes as international gold prices remain volatile due to ongoing geopolitical tensions, inflationary pressures, and shifting investor sentiment. Analysts suggest that gold continues to serve as a safe-haven asset amid concerns over slowing global economic growth and the possibility of further interest rate adjustments by major central banks.
Domestic Gold Price Movement
According to data from leading bullion associations and online trading platforms, gold prices in major Indian cities showed a consistent uptrend:
- Delhi: ₹1,25,450 per 10g (24-carat)
- Mumbai: ₹1,25,400 per 10g (24-carat)
- Chennai: ₹1,25,580 per 10g (24-carat)
- Kolkata: ₹1,25,420 per 10g (24-carat)
- Bengaluru: ₹1,25,350 per 10g (24-carat)
While the variations are minor, the overall trend indicates a nationwide rise in bullion prices, supported by steady retail demand during the ongoing festive season and higher international spot prices.
Silver, too, gained marginally, trading around ₹1,58,500 per kilogram, reflecting global market strength.
Global Market Influence
In the international market, gold prices hovered near $2,650 per ounce, supported by a weaker U.S. dollar and persistent geopolitical uncertainty in parts of Europe and the Middle East. Investors have been flocking to precious metals as a hedge against inflation and currency volatility.
The U.S. Federal Reserve’s cautious stance on future rate cuts has also influenced gold’s upward momentum. A weaker dollar generally makes gold more attractive for buyers holding other currencies, thereby driving up demand.
Commerzbank analysts noted that “gold remains resilient in the face of mixed economic data and market speculation about central bank policies.” They added that sustained buying by central banks, particularly in emerging economies, continues to bolster gold prices globally.
Festive Season Demand in India
The rise in domestic gold prices coincides with the onset of India’s festive and wedding season — traditionally a period of heightened demand. Dhanteras and Diwali, falling in the coming weeks, are expected to fuel purchases of gold jewelry, coins, and bars.
Jewelry retailers across India have reported an increase in inquiries and pre-bookings, even with prices near record highs. Many buyers view gold not only as a symbol of prosperity but also as a long-term investment hedge.
A Mumbai-based jeweler said, “Even though prices are high, people are still buying gold, especially small quantities, to mark auspicious occasions. Investment-grade gold, such as coins and bars, is seeing strong traction.”
Investment Outlook
Financial experts believe that the current price surge could extend if global market conditions remain uncertain. With inflation still above target levels in several major economies and potential geopolitical flare-ups on the horizon, gold is likely to remain in demand as a safe-haven asset.
However, some analysts caution that profit-taking could occur in the short term if the U.S. dollar strengthens or if there’s a rebound in equity markets. Despite this, the long-term outlook for gold remains optimistic.
According to the World Gold Council (WGC), India continues to be one of the largest consumers of gold globally, accounting for around 25% of total global jewelry demand. The council expects sustained interest from both retail and institutional investors through 2025.
Factors Driving Prices Up
Several factors are contributing to the recent rise in gold prices:
- Global Economic Uncertainty: Persistent inflation and geopolitical conflicts have prompted investors to move toward safer assets.
- Weaker U.S. Dollar: A depreciating dollar boosts gold prices in other currencies.
- Festive Demand in India: Seasonal buying increases domestic consumption.
- Central Bank Purchases: Several countries have increased their gold reserves.
- Market Speculation: Anticipation of interest rate cuts or pauses influences investor sentiment.
Silver Prices Also on the Rise
Silver followed gold’s upward trajectory, trading around ₹1,58,500 per kg. The metal’s industrial demand, coupled with its role as a hedge asset, has pushed prices higher. Analysts expect silver to benefit from growth in green technologies, such as solar panels and electric vehicles, which use significant quantities of the metal.
Conclusion
The steady increase in gold prices in India to ₹1,25,400 per 10 grams underscores the metal’s enduring appeal as both an investment and a cultural staple. While volatility in international markets continues to shape short-term movements, the long-term fundamentals for gold remain strong, supported by demand from central banks, investors, and consumers alike.
As India enters the festive season, gold’s allure remains undiminished — a timeless reflection of wealth, security, and tradition.
