Gold and silver prices continue to fluctuate in India as global economic factors shape the precious metals market. On Tuesday, February 4, 2025, gold prices experienced a marginal decline, while silver rates remained stable across most cities.
The price of 24-carat gold in India is currently ₹8,421.3 per gram, reflecting a decrease of ₹440. Meanwhile, 22-carat gold is priced at ₹7,721.3 per gram, a fall of ₹400. Over the past week, 24-carat gold has shown a -3.04% decline, while over the last month, it has dropped by -6.84%.
Silver, on the other hand, remains steady at ₹102,500 per kg with no significant change recorded in the last 24 hours.
Gold and Silver Rates in Major Indian Cities
For those tracking gold and silver prices across different regions, here is the latest update from key cities in South India:
Gold Prices in Major South Indian Cities (₹ per 10 grams)
| City | Gold Rate Today (₹) | Yesterday (₹) | Last Week (₹) |
| Chennai | 84,061 | 84,511 | 81,941 |
| Bangalore | 84,055 | 84,505 | 81,935 |
| Hyderabad | 84,069 | 84,519 | 81,949 |
| Visakhapatnam | 84,077 | 84,527 | 81,957 |
| Vijayawada | 84,075 | 84,525 | 81,955 |
Silver Prices in Major South Indian Cities (₹ per kg)
| City | Silver Rate Today (₹) | Yesterday (₹) | Last Week (₹) |
| Chennai | 1,09,600 | 1,09,700 | 1,06,600 |
| Bangalore | 1,01,500 | 1,01,600 | 98,500 |
| Hyderabad | 1,10,200 | 1,10,300 | 1,07,200 |
| Visakhapatnam | 1,08,600 | 1,08,700 | 1,05,600 |
| Vijayawada | 1,11,000 | 1,11,100 | 1,08,000 |
Why Are Gold and Silver Prices Changing?
The fluctuation in gold and silver prices can be attributed to several global and domestic factors. Some key influences include:
- Global Demand and Supply: Gold and silver prices are heavily influenced by international market trends. A surge in demand, particularly from central banks and investors, can drive prices up, while an oversupply may lead to price corrections.
- Currency Exchange Rates: The strength of the US dollar relative to the Indian rupee plays a crucial role in determining gold and silver prices. When the rupee depreciates, the cost of gold rises for Indian buyers.
- Interest Rates and Inflation: When interest rates are high, gold and silver become less attractive investment options since they do not generate interest or dividends. Conversely, during inflationary periods, investors flock to gold as a hedge against inflation.
- Government Regulations and Policies: Import duties, taxes, and government regulations regarding gold and silver trade can directly impact prices.
- Geopolitical and Economic Events: Political instability, war, and economic downturns often push investors toward safe-haven assets like gold and silver, driving up their prices.
Expert Insights from the Jewelry Industry
Jewelry industry experts and market analysts believe that gold prices may remain volatile in the coming weeks. According to Rajiv Malhotra, a leading jeweler in Mumbai, the recent decline in gold rates could encourage buyers to make purchases ahead of an anticipated rebound in prices.
“Many investors are closely watching global markets and interest rates. If inflation continues to remain high, we may see gold prices inch up again,” Malhotra explained.
Silver, often referred to as “poor man’s gold,” is seeing steady demand due to its extensive industrial use in electronics, solar panels, and medical devices. Suresh Agarwal, a bullion trader in Delhi, noted that silver’s performance is largely tied to industrial production.
“If global economic recovery continues at its current pace, silver prices are likely to remain stable or witness gradual appreciation,” he added.
Should You Buy Gold or Silver Right Now?
For investors wondering whether now is the right time to buy gold or silver, financial experts suggest caution. The market is currently seeing a correction phase, and while prices have dipped slightly, they are still at historically high levels.
If you are buying gold for long-term investment, this could be an opportunity to accumulate small quantities. However, traders looking for short-term gains should monitor global market trends and inflation data before making a purchase.
Silver, with its industrial demand, could offer better growth potential in the coming months. Investors looking for portfolio diversification might find silver a compelling alternative to gold.
Gold Price Outlook for 2025
Market analysts are predicting a mixed outlook for gold in 2025. While some expect prices to rise due to geopolitical tensions and inflation concerns, others believe that a strong US dollar and potential interest rate hikes could cap gains.
According to Goldman Sachs’ latest forecast, gold prices could range between ₹8,000 – ₹8,800 per gram by mid-2025, depending on macroeconomic factors.
Conclusion
Gold and silver prices continue to show volatility, making them interesting assets for both investors and jewelry buyers. While gold has seen a slight dip today, it remains a preferred investment during uncertain economic times. Silver, on the other hand, is gaining traction due to its industrial applications.
Whether you are buying gold for personal use or investing for the long term, staying updated with market trends and price fluctuations is essential. Keep an eye on global factors, currency exchange rates, and government policies to make informed decisions.