Gold prices in India have touched a significant milestone, breaching the Rs 1 lakh per 10 grams mark, reflecting rising global tension and economic uncertainty. As recession fears loom in the United States, investors are increasingly turning to gold as a reliable hedge against volatility.
Market Trends and Key Price Updates
On May 9, 2025, 24-carat gold continued its upward streak, priced above Rs 1,00,000 per 10 grams in several metro cities. Renowned for its exceptional purity, 24-carat gold has drawn premium buyers amid turbulent financial markets. Meanwhile, 22-carat gold, often preferred for jewelry due to its durability and classic appeal, is also witnessing strong demand.
Silver, on the other hand, remained steady at Rs 99,000 per kg in Mumbai, as per Goodreturns.in. This plateau follows a sharp rally earlier in the quarter, suggesting potential stabilization in the near term.
| City | 24K Gold (10g) | 22K Gold (10g) |
|---|---|---|
| Delhi | Rs 1,01,050 | Rs 92,500 |
| Mumbai | Rs 1,00,850 | Rs 92,300 |
| Chennai | Rs 1,01,700 | Rs 93,100 |
| Kolkata | Rs 1,00,950 | Rs 92,450 |
What’s Behind the Gold Surge?
Several economic forces are driving the surge. Global recession worries, especially in the US, have intensified demand for safer investment options. Additionally, a weaker dollar, inflationary pressure, and geopolitical tension are further pushing up international gold rates, directly impacting Indian prices.
In India, local taxes, import duties, and exchange rate fluctuations also play pivotal roles. Given India’s cultural affinity toward gold, particularly during weddings and festivals, demand remains consistently high regardless of price hikes. This emotional and financial significance ensures gold remains a preferred long-term investment.
Notably, financial analysts are closely monitoring how market trends like a potential RBI rate shift or changes in global policy could further affect bullion prices. With auto stocks stabilizing and a possible bank rally brewing, investor sentiment is currently mixed, but leaning cautiously optimistic.
That said, experts advise keeping a diversified portfolio, with gold serving as a critical safety net. As the market adjusts to evolving global dynamics, staying updated on key indicators is essential for informed decision-making.