Gold Prices Reach ₹12,077 per Gram in India Amid Rising Demand
As of October 6, 2025, gold prices in India have increased to ₹ 12,077 per gram for 24-carat (99.9% pure) gold, which marks a significant increase of ₹ 137 from the previous day. This growth has been seen in major cities including Delhi, Mumbai, Chennai and Bengaluru.
Gold price increase factors
Many major factors have recently contributed to the rise in gold prices:
- Global Economic Uncertainty: Ongoing geopolitical stress and economic instability have inspired investors to look for safe-haven property like gold.
- US dollar and bond yields fall: A weak US dollar and low bond yields have made gold more attractive, as it is priced in dollars and competes with fixed income investments
- Seasonal demand: The festival season in India sees an increase in the purchase of gold due to investment and cultural reasons.
City-wise Gold Prices
The price of gold can vary slightly between cities due to local taxes, demand, and supply factors. As of today:
- Delhi: ₹12,092 per gram for 24K gold
- Mumbai: ₹12,077 per gram
- Chennai: ₹12,218 per gram
- Bengaluru: ₹12,150 per gram
These variations are typically minimal and reflect local market conditions.
Understanding Gold Purity and Pricing
Gold is measured in karats to indicate its purity:
- 24K Gold: 99.9% pure, ideal for investment and coinage.
- 22K Gold: 91.6% pure, commonly used in jewelry.
- 18K Gold: 75% pure, often used in high-end jewelry.
The higher the purity, the more expensive the gold. For instance, 24K gold is more expensive than 22K or 18K gold due to its higher purity.
Impact on Consumers and Investors
For consumers planning to purchase gold, the current prices may be higher than usual. However, gold remains a popular choice for:
- Investment: Gold is considered a stable investment, especially during times of economic uncertainty.
- Jewelry: Despite higher prices, gold jewelry remains in high demand during the festive season.
Investors should consider their financial goals and market conditions before making significant purchases.
Expert Opinions
Financial experts suggest that while gold prices are currently high, they may continue to rise if global economic uncertainties persist. However, they also advise caution, as gold prices can be volatile and subject to sudden changes.
Tips for Buyers
- Check Purity: Ensure the gold is hallmarked for authenticity.
- Compare Prices: Look at different jewellers and cities to get the best rate.
- Consider Investment Forms: Gold coins, bars, or ETFs can be alternatives to jewelry.
Conclusion
Finally, the increase in gold prices reflects a combination of global economic uncertainty, seasonal demand, and fluctuations in currency values. While high prices can affect consumer procurement, gold is a preferred investment and a dominant choice for jewelry buyers, especially during festivals and weddings. Investors should be informed about market trends and make purchases carefully. Despite the instability, gold remains a reliable property for wealth conservation and long-term financial security in India.
