Gold prices in India continued their upward trend on May 8, defying steady interest rates by the US Federal Reserve. Rising geopolitical tensions and ongoing trade concerns between the US and China have strengthened investor appetite for safe-haven assets like gold.
Gold and Silver Prices Surge Across Major Cities
In Mumbai, the price of 22-carat gold reached ₹90,900 per 10 grams, while 24-carat gold was priced at ₹99,150 per 10 grams, according to Goodreturns. Silver also saw gains, increasing by ₹100 to ₹99,100 per kilogram.
On the Multi Commodity Exchange (MCX), gold futures for June delivery were trading 0.09% higher at ₹97,180 per 10 grams early Thursday. In contrast, silver futures dropped slightly by 0.54%, quoted at ₹96,254 per kg. Despite minor intraday dips, the broader sentiment remains bullish as global uncertainties keep investor focus on bullion markets.
The consistent rise in gold prices over recent weeks has pushed 24-carat rates close to ₹1 lakh, reinforcing its position as a premium investment choice. While 24-carat gold offers superior purity, 22-carat remains popular among buyers seeking both aesthetic value and long-term investment returns.
Why Are Gold Prices Climbing?
Several macroeconomic factors are at play. International market volatility, ongoing trade negotiations, and recessionary fears in the US have created a favorable backdrop for gold. Additionally, domestic elements such as import duties, GST, and currency exchange fluctuations significantly affect local pricing.
India’s deep-rooted cultural and economic ties with gold make it a go-to asset, especially during weddings and festivals. This consistent demand, combined with global headwinds, sustains upward pressure on gold rates.
Here’s a quick look at gold prices across major Indian cities (as of May 8, 2025):
| City | 22-Carat Gold (₹/10g) | 24-Carat Gold (₹/10g) |
|---|---|---|
| Mumbai | ₹90,900 | ₹99,150 |
| Delhi | ₹91,050 | ₹99,300 |
| Chennai | ₹91,250 | ₹99,500 |
| Kolkata | ₹90,800 | ₹99,100 |
Market Outlook: Tracking the Trends
As the global financial landscape remains uncertain, analysts expect continued volatility in precious metals. Investors are advised to monitor key indicators, including Federal Reserve signals, inflation data, and international trade developments, all of which have a direct influence on market trends.
Meanwhile, a notable bank rally and renewed interest in auto stocks have also been shaping broader market sentiment. However, gold’s resilience in the face of market fluctuations continues to attract both short-term traders and long-term investors looking for stability.
Stay updated on MCX India and other official sources to navigate these shifts effectively and make informed investment decisions.