Gold prices in India have surged to unprecedented levels as of April 14, 2025, driven by escalating global trade tensions and increased demand for safe-haven assets.
📈 Current Gold Prices in India (April 14, 2025)
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24 Karat Gold: ₹93,350 per 10 grams
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22 Karat Gold: ₹85,510 per 10 grams
Here’s a quick look at the prices for 10 grams in some major cities:
| City | 22 Carat (per 10 gm) | 24 Carat (per 10 gm) |
|---|---|---|
| Chennai | ₹ 87,550 | ₹ 95,510 |
| Delhi | ₹ 87,700 | ₹ 95,660 |
| Mumbai | ₹ 87,550 | ₹ 95,510 |
| Kolkata | ₹ 87,550 | ₹ 95,510 |
| Bangalore | ₹ 87,550 | ₹ 95,510 |
| Hyderabad | ₹ 87,550 | ₹ 95,510 |
Global Factors Influencing the Surge
Several international factors have contributed to the sharp rise in gold prices:
- US-China Trade Tensions: Ongoing disputes have heightened economic uncertainties, prompting investors to seek refuge in gold.
- Declining US Dollar Index: A weaker dollar makes gold more attractive to investors holding other currencies.
- Central Bank Purchases: Countries like Russia, China, and India have increased their gold reserves to diversify away from the US dollar.
Impact on Indian Market
Despite the price hike, demand for gold in India remains robust, especially among affluent consumers purchasing jewelry and coins for weddings and investment purposes. Titan Company reported a 25% increase in Q4 revenue, attributing the growth to surging gold prices and sustained consumer interest.
Analysts anticipate that gold prices may continue to rise, potentially reaching $3,000 per ounce within the next six to eighteen months, as geopolitical tensions persist and central banks maintain their buying spree.
Analyst Forecasts:
- HSBC has raised its average gold price forecast for 2025 to $3,015 per ounce, citing geopolitical risks.
- Deutsche Bank projects average gold prices of $3,139 per ounce in 2025 and $3,700 in 2026, driven by recent economic and geopolitical developments.
- Goldman Sachs has increased its end-2025 gold price forecast to $3,300 per ounce, citing stronger-than-expected ETF inflows and sustained central bank demand.
Impact on India’s Economy:
In India, the domestic landed gold price has risen in tandem with global prices, reaching a record INR 96,020 per 10 grams. This increase is partly due to the depreciation of the Indian Rupee against the US Dollar. The surge in gold prices has led to a significant rise in gold-backed loans, with a 68% growth in the first nine months of the fiscal year, as consumers leverage the higher value of their gold holdings. World Gold Council
Understanding Gold Purity:
- 24 Carat (24K): This is the purest form of gold, containing 99.9% gold. It is usually more expensive but is also softer and less suitable for making most types of jeweler.
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22 Carat (22K): This form contains 91.67% pure gold, with the remaining percentage made up of other metals like copper, silver, and zinc. These added metals make the gold harder and more durable for jewellery making.
- 18 Carat (18K): This gold is 75% pure gold mixed with other metals, making it even more durable. It is often used in diamond and other gemstone jewelry.
