India witnessed a historic surge in gold prices on April 16, as rates hit a new all-time high, crossing the ₹94,000 mark for the first time. According to the India Bullion and Jewelers Association (IBJA), the price of 10 grams of 24-carat gold rose by ₹1,387 to reach ₹94,489, compared to the previous price of ₹93,102. Silver prices also saw an upward movement, climbing ₹373 to reach ₹95,403 per kilogram.
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Let’s explore the key reasons behind this surge, market trends across major Indian cities, and forecasts for the rest of the year.
Why Are Gold Prices Rising? Three Major Factors Driving the Rally
1. US Tariff Policy Sparks Global Economic Fears
As trade war concerns escalate, investors are turning to gold as a safe-haven asset. Historically, during periods of uncertainty or recession, gold is viewed as a secure investment, pushing its demand—and consequently prices—upwards.
2. Weak Indian Rupee Fuels Gold Price Increase
The depreciation of the Indian rupee against the US dollar has played a significant role in the rising cost of imported gold. With the rupee falling by nearly 4% this year, the import expense has gone up, driving gold prices higher in the domestic market.
3. Wedding Season Boosts Demand for Gold Jewellery
The upcoming wedding season has triggered a spike in demand for gold jewellery across metro cities such as Delhi, Mumbai, and Chennai. Despite the steep prices, jewellers report brisk sales as gold continues to hold symbolic and investment value for Indian consumers.
Gold and Silver Prices Across Major Indian Cities
Gold rates vary slightly across regions due to local taxes and market demand. Here’s a quick look at the latest prices for 10 grams of gold in major cities:
- Delhi: ₹88,300 (22-carat), ₹96,320 (24-carat)
- Mumbai: ₹88,150 (22-carat), ₹95,180 (24-carat)
- Kolkata: ₹88,150 (22-carat), ₹96,170 (24-carat)
- Chennai: ₹88,150 (22-carat), ₹96,170 (24-carat)
Silver has also remained strong across the country, with the current rate standing at ₹95,403 per kilogram.
Gold Becomes ₹18,327 Costlier in 2024 So Far
Since January 1, 2024, the price of 10 grams of 24-carat gold has surged from ₹76,162 to ₹94,489—marking an increase of ₹18,327. Silver prices have also seen a significant rise, jumping from ₹86,017 per kilogram to ₹95,403—a gain of ₹9,386.
To put this in perspective, gold had become ₹12,810 more expensive over the entire year of 2023. This year’s price growth has already surpassed that figure within just a few months.
Gold May Touch ₹1.10 Lakh by Year-End: Experts Predict Further Surge
According to a report by international investment bank Goldman Sachs, ongoing trade tensions and recession fears could push global gold prices to $3,700 per ounce.
This projection is supported by several macroeconomic factors: geopolitical uncertainty, inflation concerns, and increased central bank gold buying globally. These factors contribute to a bullish outlook for gold in both international and Indian markets.
What It Means for Investors and Buyers
For investors, gold’s rapid ascent underscores its value as a hedge against economic instability and currency depreciation.
For jewellery buyers, however, the rising prices mean heavier bills—especially with the wedding season around the corner. While demand remains strong, continued price increases may lead some to postpone large purchases or opt for lower-weight designs.
Bottom Line: Gold Continues to Shine Bright
With a price increase of over ₹18,000 this year alone, gold has proven to be one of the most reliable investment assets in turbulent times. As global and domestic economic conditions continue to evolve, the precious metal is likely to remain in focus—whether as an investment, a cultural symbol, or a safeguard against volatility.
