In a significant milestone for the Indian bullion market, the price of 24-karat gold has surged past ₹1 lakh per 10 grams for the first time ever on Tuesday, April 22. Over the past 112 days, gold prices have climbed ₹23,838, driven by global economic uncertainty, a weakening rupee, and seasonal demand.
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Meanwhile, silver prices slipped ₹342 to trade at ₹95,900 per kilogram, down from ₹96,242 on Monday. Notably, silver had hit its all-time high of ₹1,00,934 per kilogram on March 28.
Why Are Gold Prices Increasing So Rapidly in 2024?
Several global and domestic factors are fueling this rapid spike in gold prices:
1. Rising Global Tensions and Economic Slowdown
The escalating trade conflict between the U.S. and China. Investors traditionally view gold as a safe-haven asset during economic uncertainty, leading to increased demand and higher prices.
2. Weakening Rupee Against the Dollar
The Indian rupee has depreciated by approximately 4% this year, making gold imports more expensive. Since India imports most of its gold, a weaker rupee directly contributes to higher domestic gold prices.
3. Seasonal Demand from the Wedding Season
India’s peak wedding season is underway, significantly boosting the demand for gold jewelry. Despite high prices, jewelers in metro cities like Mumbai, Delhi, and Chennai report strong sales, as consumers continue to view gold as a symbol of prosperity and a reliable investment.
Gold Gains ₹23,838 in Just 112 Days
At the start of 2024, the price of 10 grams of 24-karat gold was ₹76,162. Since then, it has surged by ₹23,838, reaching the ₹1 lakh milestone. Silver has also experienced a sharp rise, increasing ₹9,883 from ₹86,017 per kilogram to ₹95,900 in the same period.
Gold May Touch ₹1.10 Lakh by Year-End, Say Experts
International investment firm Goldman Sachs predicts that gold could reach $3,700 per ounce by the end of 2024, citing global economic instability. Based on international trends and import costs, this could push Indian gold prices to as high as ₹1.10 lakh per 10 grams.
Buy Only BIS-Certified Hallmarked Gold
Experts advise consumers to buy only BIS (Bureau of Indian Standards) certified hallmarked gold. This certification includes a six-digit alphanumeric HUID (Hallmark Unique Identification Number) like “AZ4524,” ensuring the authenticity and purity of the gold item. Hallmarking guarantees the exact carat value, giving buyers confidence and transparency.
Bottom Line: Gold Continues to Shine Bright in 2024
With geopolitical tensions, currency fluctuations, and increased consumer demand driving the momentum, gold’s rally shows no signs of slowing down. Whether you’re an investor or shopping for an upcoming celebration, staying informed about market trends and choosing certified gold is essential in today’s dynamic economic landscape.
