Winning Bizness Desk
Mumbai Gold prices in India reached an all-time high for the third consecutive day on February 5. According to the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold surged by ₹1,647, reaching ₹84,657. On February 4, gold had already hit an all-time high of ₹83,010 per 10 grams. Silver prices also witnessed an upward trend. The price of silver increased by ₹1,632 to reach ₹95,425 per kilogram. Previously, it was priced at ₹93,793 per kilogram. Silver had hit its all-time high on October 23, 2024, when it reached ₹99,151 per kilogram.
5 Major Reasons Behind Gold’s Price Surge
- Geopolitical Tensions: The return of Donald Trump as the U.S. President has escalated geopolitical tensions, leading to increased demand for gold as a safe-haven asset.
- Interest Rate Cuts in the US: The U.S. Federal Reserve recently reduced interest rates and may continue to do so, boosting gold prices.
- Weak Rupee Against the Dollar: The Indian rupee has depreciated against the U.S. dollar, making gold costlier for Indian buyers.
- Rising Inflation: Higher inflation is supporting gold prices as investors look for inflation-hedging assets.
- Stock Market Volatility: Increased volatility in the stock market has led to a rise in investments in Gold ETFs (Exchange-Traded Funds), pushing gold prices higher.
Gold Gained 20% and Silver 17% in 2024
In 2024, gold prices surged by 20.22%, while silver prices increased by 17.19%. On January 1, 2024, gold was priced at ₹63,352 per 10 grams, which climbed to ₹76,162 by December 31, 2024. Similarly, silver prices rose from ₹73,395 per kilogram to ₹86,017 per kilogram during the same period.
Gold May Touch ₹90,000 in 2025
Ajay Kedia, Director of Kedia Advisory, predicts that after a correction, gold prices are set to rise further. He cites interest rate cuts in both the U.S. and the UK, along with increasing geopolitical tensions, as key factors supporting gold prices. Additionally, rising investments in Gold ETFs are driving demand. Considering these factors, gold prices could reach ₹90,000 per 10 grams this year.
Always Buy Certified Gold
Experts recommend purchasing only Bureau of Indian Standards (BIS) hallmarked certified gold to ensure purity. Every piece of certified gold carries a six-digit hallmark code, known as the Hallmark Unique Identification Number (HUID). This alphanumeric code verifies the purity of gold and ensures its authenticity.
