Gold prices in India have reached unprecedented levels, driven by a combination of heightened wedding season demand and global economic instability. In Delhi, the price of 99.99% pure gold surged by ₹700 per 10 grams, reaching a new all-time high of ₹92,000. Similarly, 99.9% pure gold was recorded at ₹91,250 per 10 grams the previous day. 99.5% pure gold also saw a ₹700 increase, bringing it to ₹91,500 per 10 grams.
Silver Prices Also Break Records
Not just gold, but silver prices have also skyrocketed. On Wednesday, silver prices jumped by ₹1,000, reaching a record ₹1,03,500 per kilogram. This is a significant increase from ₹1,02,500 per kilogram on Tuesday. The sharp rise in silver prices aligns with the growing demand for precious metals amid economic uncertainty and increasing geopolitical risks.
Why Are Gold Prices Rising So Rapidly?
Several factors contribute to the relentless surge in gold prices:
- Middle East Tensions: Ongoing geopolitical conflicts, particularly in West Asia, have increased global uncertainty, pushing investors toward safe-haven assets like gold.
- US Economic Slowdown: Concerns about a potential US recession have fueled gold’s appeal as a stable investment.
- Wedding Season Demand: In India, festive and wedding seasons drive significant gold purchases, with jewelers stocking up to meet rising consumer demand.
- Strong Global Trends: International markets have seen consistent upward momentum in gold prices, with spot gold reaching record highs.
Spot Gold Prices at Record Levels
According to LKP Securities Vice President Jatin Trivedi, gold prices have exhibited an overall bullish trend. However, with the US Federal Reserve’s policy review imminent, markets are exercising caution. In global markets, spot gold climbed 0.15% to $3,039.22 per ounce. During the session, gold touched an all-time high of $3,045.39 per ounce.
Massive Inflows in Gold ETFs
The rising demand for gold is also reflected in gold exchange-traded funds (ETFs). Chintan Mehta, CEO of Abans Financial Services, highlighted that February witnessed an inflow of $9.4 billion into gold ETFs, the highest ever recorded. Investors are aggressively increasing their gold holdings in response to inflation concerns and a weaker dollar.
Traders Eye US Federal Reserve Meeting
HDFC Securities Senior Analyst Soumil Gandhi noted that traders are closely monitoring the US Federal Reserve’s meeting outcomes. If the economic situation improves later this year, sentiment in the gold market might shift. However, until macroeconomic conditions stabilize, gold is expected to maintain its bullish trajectory.
Gold Prices in Key Indian Cities
Gold rates vary across India due to regional demand fluctuations, local taxes, and logistics costs. Below are the latest gold prices in major cities:
| City | 22K Gold (per 10g) | 24K Gold (per 10g) |
|---|---|---|
| Delhi | ₹84,500 | ₹92,000 |
| Mumbai | ₹84,400 | ₹91,850 |
| Kolkata | ₹84,450 | ₹91,900 |
| Chennai | ₹85,200 | ₹92,700 |
| Bengaluru | ₹84,300 | ₹91,750 |
| Hyderabad | ₹84,500 | ₹91,950 |
Is It the Right Time to Invest in Gold?
Investors remain divided on whether gold prices will continue to rise or eventually correct. While short-term volatility is expected, long-term demand remains strong, driven by:
- Central bank gold purchases
- Declining bond yields
- Inflation hedge strategies
- Economic slowdown fears
Market analysts believe that gold could see further gains if geopolitical tensions persist and the US Federal Reserve adopts a dovish monetary policy.
