In a remarkable turn of events, gold prices in India have witnessed a substantial increase over the past week, with 24-carat gold becoming ₹2,070 more expensive per 10 grams. This surge has brought the price of 24-carat gold to ₹84,640 per 10 grams in the national capital, Delhi, as of February 2, 2025. Similarly, 22-carat gold has seen a rise of ₹1,900, now priced at ₹77,600 per 10 grams in Delhi.
Weekly Gold Price Analysis
The following table provides a detailed breakdown of the gold price movements over the past week:
| Date | 24-Carat Gold (₹/10g) | 22-Carat Gold (₹/10g) |
| January 26, 2025 | 82,570 | 75,700 |
| January 27, 2025 | 82,800 | 75,900 |
| January 28, 2025 | 83,100 | 76,200 |
| January 29, 2025 | 83,500 | 76,500 |
| January 30, 2025 | 84,000 | 77,000 |
| January 31, 2025 | 84,900 | 77,600 |
| February 1, 2025 | 84,900 | 77,600 |
| February 2, 2025 | 84,640 | 77,600 |
Source: Financial Times India Research
City-Wise Gold Prices
Gold prices vary across different cities in India due to factors such as transportation costs, local taxes, and demand-supply dynamics. Here’s a look at the current gold prices in 10 major Indian cities:
| City | 24-Carat Gold (₹/10g) | 22-Carat Gold (₹/10g) |
| Delhi | 84,640 | 77,600 |
| Mumbai | 84,490 | 77,450 |
| Chennai | 84,490 | 77,450 |
| Kolkata | 84,490 | 77,450 |
| Hyderabad | 84,490 | 77,450 |
| Ahmedabad | 84,540 | 77,500 |
| Bhopal | 84,540 | 77,500 |
| Jaipur | 84,640 | 77,600 |
| Chandigarh | 84,640 | 77,600 |
| Lucknow | 84,640 | 77,600 |
Source: Financial Times India Research
Factors Influencing the Surge
Multiple key factors have driven the recent spike in gold prices:
Global Economic Uncertainty: Ongoing geopolitical tensions and economic uncertainties have led investors to seek safe-haven assets like gold, driving up demand and prices.
- Currency Fluctuations: The depreciation of the Indian Rupee against the US Dollar has made gold imports more expensive, contributing to the rise in domestic gold prices.
- Inflationary Pressures: Rising inflation rates have prompted investors to turn to gold as a hedge against inflation, increasing its demand and value.
- Central Bank Policies: Accommodative monetary policies and potential interest rate cuts by central banks globally have enhanced the appeal of gold as an investment.
Silver Prices Also on the Rise
Parallel to the gold market, silver prices have experienced a significant uptick. Over the past week, silver prices have increased by ₹2,000 per kilogram, reaching ₹99,500 per kilogram as of February 2, 2025. On February 1, silver was priced at ₹95,700 per kilogram in Delhi’s bullion market, up by ₹700 from the previous day.
Economic Survey Insights
The Economic Survey 2024-25, presented on January 31, 2025, indicates that gold prices may experience a decline in 2025. Citing the World Bank’s ‘Commodity Market Outlook’ from October 2024, the survey projects a 5.1% decrease in commodity prices in 2025 and a further 1.7% decline in 2026. Conversely, the survey suggests that silver prices could see an uptick during the same period.
Investment Considerations
Investors are advised to exercise caution and conduct thorough research before making investment decisions in the gold market. While the recent surge presents potential opportunities, the projected decline in gold prices later in the year, as indicated by the Economic Survey, suggests that the market may experience volatility. Diversifying investment portfolios and consulting with financial advisors can help mitigate risks associated with such market fluctuations.
Conclusion
The past week has seen a notable rise in gold prices across India, with significant increases observed in both 24-carat and 22-carat gold. Various economic factors, including global uncertainties, currency fluctuations, and inflationary pressures, have contributed to this surge. As the market remains dynamic, stakeholders are encouraged to stay informed and approach investment decisions with prudence.