Gold prices have been steadily rising over the past six months, causing considerable concern among investors and consumers alike.
Gold Price Today: Gold prices in India recently hit a new record high. In April 2025, the price exceeded ₹100,000 per 10 grams for the first time. The consistent price increase over the past six months surprised both investors and retail buyers. However, this upward trend appears to be slowing. A decrease of approximately ₹930 has been recorded in gold prices over the past week. While prices remain above ₹100,000, this drop has created a stir in the gold market.
Decline After Six Months of Rise
From the end of 2024 to June 2025, gold prices experienced a significant surge. Global geopolitical tensions, inflation, and economic uncertainties solidified gold's position as a safe haven investment. The April 2025 price exceeding ₹100,000 per 10 grams sparked market speculation about the sustainability of this rise.
Following the US Federal Reserve's announcement to maintain interest rates at 4.25% to 4.50%, gold prices softened. A decrease of ₹930 per 10 grams in a week, while modest, marks the first downward movement in six months.
Impact of Iran-Israel Tensions
Escalating tensions between Iran and Israel have significantly impacted gold prices internationally. Global conflicts or geopolitical crises typically drive demand for gold as a safe haven asset. These tensions initially fueled gold's price increase, but the Fed's decision tempered this surge.
Current Gold Rates in the Indian Market
Major Indian cities have seen a slight decrease in 24-karat and 22-karat gold prices over the past week. Current rates in some major cities are listed below:
- Delhi: 24-karat gold ₹10,090 per gram, 22-karat gold ₹9,250 per gram
- Mumbai: 24-karat gold ₹10,075, 22-karat gold ₹9,235 per gram
- Kolkata, Hyderabad, Kerala: 24-karat ₹10,075, 22-karat ₹9,235 per gram
- Ahmedabad, Vadodara: 24-karat ₹10,080, 22-karat ₹9,240 per gram
- Chennai: 24-karat ₹10,075, 22-karat ₹9,235 per gram
18-Karat Gold Prices
18-karat gold, commonly used in jewelry, is priced around ₹7,569 per gram in Delhi and approximately ₹7,556 to ₹7,600 per gram in other cities.
Silver Price Fluctuations
Silver prices are also fluctuating. In many Indian cities, 1 kg of silver has reached ₹110,000. Prices in states like Chennai, Hyderabad, and Kerala have reached ₹120,000 per kg.
Silver Rates in Major Cities:
- Delhi, Mumbai, Pune, Kolkata, Bengaluru: ₹110,000 per kg
- Chennai, Hyderabad, Kerala: ₹120,000 per kg
Will Gold Prices Fall Further?
Predicting future gold prices is difficult, as they depend on global events, currency conditions, interest rates, and investor sentiment. The Fed's decision to maintain interest rates suggests a slow approach to controlling inflation. This might strengthen the dollar and cause further softening in gold prices.
However, escalating Iran-Israel tensions or other geopolitical risks could reignite price increases. Investors should proceed with caution.
Implications for Investors
Potential gold investors should carefully consider their options. Further price drops may present buying opportunities. However, the current level could also be beneficial for long-term investors, given gold's historically b long-term returns.
Relief for Wedding Gold Buyers
With the upcoming wedding season in India, this price drop offers some relief to families planning gold purchases. Although prices remain above ₹100,000 per 10 grams, the decrease of over ₹900 in a week will reduce overall costs.
