As of February 5, 2025, gold prices in India have seen a modest increase, while silver rates have recorded a decline. The price of 10 grams of 24-carat gold in Delhi stands at ₹85,383, marking an increase of ₹1,170 from the previous rate. Similarly, the cost of 22-carat gold has risen to ₹7,828.3 per gram, reflecting a gain of ₹1,070.
Meanwhile, silver prices in the country have dropped, with 1 kg of silver now priced at ₹1,01,500, down by ₹1,000 compared to the previous day. This shift in the market is influenced by various global and domestic factors, including currency fluctuations, interest rates, and economic conditions.
Gold and Silver Rates Across Major Indian Cities
Gold Prices in Southern India
The following table provides a comparative analysis of gold prices across major South Indian cities:
| City | Gold Rate Today (10g, 24K) | Gold Rate Yesterday (10g, 24K) | Gold Rate Last Week (10g, 24K) |
| Chennai | ₹85,231 | ₹84,501 | ₹82,881 |
| Bangalore | ₹85,225 | ₹84,495 | ₹82,875 |
| Hyderabad | ₹85,239 | ₹84,509 | ₹82,889 |
| Visakhapatnam | ₹85,247 | ₹84,517 | ₹82,897 |
| Vijayawada | ₹85,245 | ₹84,515 | ₹82,895 |
The increase in gold prices across all major cities suggests a rising trend, influenced by global economic factors and domestic demand.
Silver Prices in Southern India
Silver prices, on the other hand, have witnessed a decline in most cities. Below is a breakdown of the latest silver prices across South India:
| City | Silver Rate Today (1 Kg) | Silver Rate Yesterday (1 Kg) | Silver Rate Last Week (1 Kg) |
| Chennai | ₹1,08,600 | ₹1,09,600 | ₹1,06,600 |
| Bangalore | ₹1,00,500 | ₹1,01,500 | ₹98,500 |
| Hyderabad | ₹1,09,200 | ₹1,10,200 | ₹1,07,200 |
| Visakhapatnam | ₹1,07,600 | ₹1,08,600 | ₹1,05,600 |
| Vijayawada | ₹1,10,000 | ₹1,11,000 | ₹1,08,000 |
Despite the recent dip in silver prices, industry experts predict fluctuations in the coming weeks, influenced by market trends and economic indicators.
What’s Driving the Gold and Silver Market?
Precious metals like gold and silver have always been considered safe-haven assets. The current fluctuations in their prices are driven by several key factors:
1. Global Demand and Supply
Gold and silver prices are largely influenced by their demand in the international market. As industrial demand for silver fluctuates and central banks adjust their gold reserves, prices tend to shift accordingly.
2. Currency Exchange Rates
The strength of the US dollar plays a significant role in determining gold and silver prices in India. A stronger dollar typically leads to lower gold prices, while a weaker dollar makes gold more expensive.
3. Inflation and Interest Rates
Gold is often used as a hedge against inflation. When inflation rates rise, investors turn to gold as a safe investment, leading to price increases. Conversely, higher interest rates make non-interest-bearing assets like gold less attractive.
4. Government Policies and Regulations
Changes in import duties, taxation, and central bank policies can directly impact the gold and silver market. For instance, a hike in import duties can lead to increased gold prices in India.
5. Geopolitical and Economic Uncertainty
Political instability, trade wars, and global economic crises can push investors toward safe-haven assets like gold and silver, driving up demand and prices.
Expert Insights: What Do Jewelers and Analysts Say?
1. Market Sentiments from Local Jewelers
Speaking to local jewelers, many report increased consumer interest in gold jewelry and bullion amid recent fluctuations. A leading jeweler in Chennai stated:
“Gold prices are climbing, but customers continue to invest, especially with wedding season demand. Many see these price hikes as temporary and expect further movement in the coming weeks.”
2. Analysts’ Take on Future Trends
Financial analysts suggest that gold may continue to rise in the short term due to inflation concerns and global economic uncertainty. Silver, however, may remain volatile due to its industrial demand fluctuations.
A commodities expert at a financial advisory firm remarked:
“Gold’s rally is supported by increasing global uncertainty and inflation fears. Silver, being an industrial metal, faces demand-supply imbalances, which makes it more volatile than gold.”
Should You Invest in Gold or Silver Right Now?
Given the current price trends, investors might be wondering whether to invest in gold or silver. Here’s a breakdown:
- Gold: A stable and reliable investment, particularly during uncertain economic times. Ideal for long-term holdings.
- Silver: More volatile but offers higher returns when industrial demand surges. Best suited for risk-tolerant investors.
Final Thoughts
Gold and silver prices continue to fluctuate, driven by global market trends, inflation concerns, and investor sentiment. While gold is on an upward trajectory, silver has seen a slight decline, offering mixed signals for investors.
For those looking to invest, monitoring global cues and market trends will be crucial in making informed decisions. Whether buying gold for security or silver for industrial demand, timing the market remains key to maximizing returns.