Following the statements in Budget 2025, gold prices in India saw a record spike on February 4, 2025, to previously unheard-of heights.
On the other hand, silver prices unexpectedly declined. Here is a thorough analysis of the changes:
In India, gold prices stayed above ₹84,000 per 10 grammes on February 4, 2025, while silver prices slightly decreased as a result of low domestic demand. Below is a thorough analysis of the most recent changes:
Gold prices in India reached previously unheard-of heights on February 4, 2025, when the price of 10 grammes of gold on the Multi Commodity Exchange (MCX) surpassed ₹84,500.
Due to a mix of economic uncertainty, a declining rupee, and difficulties in international trade, this is the highest price ever recorded in the nation.
Important Elements of the Gold Price Increase
International Trade Conflicts:
Recent tariff impositions by the U.S. on major trading partners, including Mexico, Canada, and China, have heightened fears of a global trade war. As a result, gold has become a popular safe-haven investment among investors.
Weakening Indian Rupee:
The decline in the rupee has further pushed domestic gold prices higher, amplifying the impact of global price increases
Economic Uncertainty:
Gold has become a desirable asset for stability due to ongoing global economic volatility, which includes worries about geopolitical conflicts and central bank policies.
Price Patterns in Local and Foreign Markets
MCX Gold Price in India: On February 4, 2025, gold futures broke past records by reaching ₹84,500 per 10 grammes on the MCX.
Physical Market Prices:
In India’s physical bullion markets, gold traded at around ₹82,500 per 10 grams, reflecting both domestic and international price hikes.
Global Gold Market:
Internationally, gold prices on the Comex rose from $2,730 on January 20, 2025, to $2,864 by February 3, 2025. This represents a nearly 5% increase, showcasing gold’s resilience amid market instability
What Makes Gold So Alluring at the Moment?
Investment in a Safe Haven:
Historically, gold has been a popular investment during unstable geopolitical or economic periods.
The rising uncertainty around trade policies and international relations has driven more investors toward precious metals.
The actions of the US Federal Reserve:
The Federal Reserve’s recent statements indicating no immediate plans to reduce interest rates have supported gold demand.
Additionally, central banks globally are adopting dovish monetary policies, further driving gold prices higher.
Rising Demand Amid Trade War Fears:
As tensions between major economies escalate, demand for gold remains strong as investors seek refuge from potential market fluctuations.
Update on Gold Prices
Global Influence: Global market swings and a declining US dollar (down 0.3%) have affected gold prices. The appeal of gold as a safe-haven investment has been further enhanced by President Donald Trump’s announcement to postpone the 25% tax on Canada and Mexico.
Domestic Prices: While 22K gold was trading at ₹77,190 per 10 grammes, 24K gold fell by ₹10 to ₹84,190.
In Mumbai, the price of 22K gold was ₹77,040, while 24K gold dropped by ₹10 to ₹84,040 per 10 grammes.
Chennai and Kolkata saw comparable pricing, with 24K gold trading at ₹84,040 and 22K gold at ₹77,040.
Update on Silver Prices
worldwide and Domestic Trends: Although worldwide spot silver prices were above $31 an ounce, silver prices fell by ₹100 to ₹99,400 a kilogramme.
This reduction has been caused in part by weak industrial demand in local markets.
City-Wise Prices:
In Delhi, Mumbai, and Kolkata, silver was priced at ₹99,400 per kilogram.
In Chennai, silver was higher at ₹1,06,900 per kilogram.
Price Trends for Gold and Silver
Gold: Concerns about the US-China trade war caused prices to fall by more than 400 per 10 grammes on February 3, but they rose after the announcement of the tariff deferral.
Silver: Despite global stability, prices have only moved within a small range, and increases have been constrained by weak local demand.
Price Comparison of Silver and Gold for This Week10g of 22K gold10g of 24K
goldPrice of silver (per kilogramme)
₹77,040 ₹84,040 ₹99,400 Feb. 4, 2025
₹77,050 ₹84,050 ₹99,500 Feb. 3, 2025
Feb 1, 2025 ₹77,450 ₹84,490 ₹99,500
Jan 31, 2025 ₹77,300 ₹84,330 ₹99,500
Significant Rise in 24K Gold Prices
The price of gold has soared today, reaching an all-time high for 24K gold.
Price of 24K Gold
Rs 85,200 for 10 grammes (increase Rs 1,150)
Rs 8,52,000 for 100 grammes (increase Rs 11,500)
Price of 22K Gold
10 grams: Rs 78,100 (up Rs 1,050)
100 grams: Rs 7,81,000 (up Rs 10,500)
18K Gold Price
10 grams: Rs 63,900 (up Rs 860)
100 grams: Rs 6,39,000 (up Rs 8,600)
What is causing the decline in silver prices?
As a result of shifting market dynamics, silver prices decreased while gold prices rose.
The price of silver is Rs 98,500 per kilogramme (down Rs 1,000).
Silver Price per 10 Grams: Rs 985 (down Rs 10)
Silver Price per 100 Grams: Rs 9,850 (down Rs 100)
Today’s Gold Price Outlook: Important Forecasts and Perspectives
Gold prices are expected to continue rising due to robust global demand and economic considerations, according to market experts.
Current Patterns:
There is significant upward momentum in the MCX Gold contract.
Gold prices are expected to test resistance levels of Rs 83,500, with support levels at Rs 82,250 and Rs 81,800.
Cautionary Note:
Temporary corrections in prices are possible before the upward trend continues
Influence of the Global Market
Investor interest in precious metals like gold and silver has increased due to geopolitical tensions and the declining value of the US dollar.
While silver prices have been more stable globally but have been hampered by weak local demand, this tendency has maintained gold prices high.
What’s Causing India’s Gold Prices to Rise?
Gold price increases can be attributed to:
Demand for Safe-Haven Investments: As a result of economic instability, more investors are turning to precious metals like gold.
Gold continues to be a dependable inflation hedge, drawing in long-term investors.
In conclusion
While silver prices have somewhat decreased, gold prices in India have hit all-time highs. Experts predict that gold will continue to be a lucrative long-term investment despite both domestic and international influences influencing the market. However, investors are advised to stay updated on market trends and consult financial advisors before making decisions
The record-breaking spike in gold prices is a reflection of the rising demand for safe-haven assets in the face of economic uncertainty, a declining rupee, and tensions in global trade.
Gold continues to be a vital asset for investors looking for stability during uncertain times, even as its price hits new highs.