Gold prices in India crossed ₹95,000 per 10 grams, driven by global demand from central banks and ETFs amid market volatility. While institutional buying remains strong, retail sales have dropped 30–40% due to high prices. Consumers are selling gold or exchanging old jewellery, and jewellers are shifting to lightweight designs.
Gold prices in India soared past ₹95,000 per 10 grams on Thursday, aligning with global price records. With the inclusion of the 3% Goods and Services Tax (GST), 24-carat gold traded at ₹98,063 per 10 grams. This surge follows a global rally, where gold prices have exceeded US$ 3,300 per troy ounce—rising 10% in a month and 40% over the past year. The rally has been attributed to increased market volatility triggered by Donald Trump’s tariff announcements, which weakened the US dollar and drove investors toward the safe-haven asset.
Institutional demand has played a crucial role in supporting gold prices. According to the World Gold Council (WGC), central banks have been net buyers of over 1,000 tonnes annually for the past three years—a trend expected to continue into 2025. Similarly, Exchange-Traded Funds (ETFs) have significantly increased their gold holdings, with net purchases reaching 128 tonnes by the end of March and total ETF-held gold rising to 2,710 tonnes globally.
As prices surge, retail investors are being encouraged to invest in physical gold (bars and coins), and gold-backed financial instruments such as digital gold and ETFs. However, high prices have dampened consumer demand.
Jewellery sales in India have fallen by 30–40%, with many consumers opting to exchange old ornaments instead of buying new ones. Jewellers have responded by shifting to lightweight jewellery, typically weighing between 7 to 10 grams, to attract cautious buyers. Meanwhile, the India Bullion & Jewellers Association (IBJA) noted that rising prices have prompted some savers to sell gold for quick profits. Silver, in contrast, saw a slight dip, dropping to ₹95,369 per kilogram.
Analysts suggest that gold prices may climb further if institutional buying continues, reinforcing gold’s long-term appeal as a reliable investment.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.