Gold prices have been rising consistently, crossing ₹85,000 per 10 grams after the recent budget announcement. Even though there has been no increase in import duty, gold rates continue to climb. On February 5, 2025, the price of 24K gold has increased by ₹400 per 10 grams, making it a crucial update for investors and buyers.
Why Are Gold Prices Rising?
Several factors are responsible for the increase in gold prices:
- Global Market Uncertainty
Gold is considered a safe-haven asset during times of economic instability. Changes in U.S. financial policies, rising inflation, and market fluctuations have driven investors to buy more gold, leading to higher prices. - Impact of Interest Rates
When interest rates decrease, gold prices tend to rise because people move their investments from fixed deposits and bonds to gold for better returns. If global interest rates continue to fall, gold prices may increase further. - Seasonal Demand in India
India is one of the largest consumers of gold. Demand for gold rises during wedding seasons and festivals, causing price fluctuations. As more people buy gold for traditional and investment purposes, prices tend to go up.
Gold Rates in Major Indian Cities (February 5, 2025)
| City | 22K Gold (per 10g) | 24K Gold (per 10g) |
|---|---|---|
| Delhi | ₹78,260 | ₹85,360 |
| Chennai | ₹78,110 | ₹85,210 |
| Mumbai | ₹78,110 | ₹85,210 |
| Kolkata | ₹78,110 | ₹85,210 |
Gold prices may continue to increase as demand rises across different regions of India.
Silver Price Update
While gold prices are climbing, silver prices have shown a downward trend. On February 5, 2025, silver is priced at ₹98,400 per kg, which is lower than its peak price of ₹1,00,000 per kg.
How Are Gold Prices Determined in India?
Gold rates in India are influenced by multiple factors:
- International Gold Market: Gold prices fluctuate based on global supply and demand.
- Government Policies & Taxes: Import duties and GST rates affect gold prices in India.
- Rupee-Dollar Exchange Rate: A weaker rupee makes gold more expensive as India imports most of its gold.
- Local Demand: Increased demand during Diwali, Akshaya Tritiya, and wedding seasons drives prices up.
Should You Invest in Gold Now?
Gold has always been a reliable investment option. However, with prices at record highs, investors should monitor market trends before making a purchase. Experts suggest that gold prices may increase further if economic uncertainty continues.
If you are planning to buy gold for investment purposes, consider options like gold ETFs, sovereign gold bonds, or digital gold instead of physical gold to avoid making charges and storage costs.
Conclusion
Gold prices have surpassed ₹85,000 per 10 grams, reflecting strong demand and global economic trends. With uncertainty in the financial markets, gold remains a preferred choice for investors. Meanwhile, silver prices have declined, making it an interesting option for those looking for alternative investments. If the demand continues to rise, gold prices may reach new highs in the coming months.
