Gold prices in India have hit an all-time high, surging ₹11,500 per 100 grams for 24K gold on Tuesday, February 4, 2025. The steep rise follows the Budget 2025 announcement, which emphasized economic self-reliance, boosting investor confidence in gold as a stable asset. On the international market, gold prices are also hovering near record highs, with spot trading at $2,80.69 per ounce.
Gold price breakdown in India (February 4, 2025)
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22K gold: ₹78,100 per 10 grams (up by ₹1,050)
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24K gold: ₹85,200 per 10 grams (up by ₹1,150)
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18K gold: ₹63,900 per 10 grams (up by ₹860)
Meanwhile, silver prices dipped by ₹1,000 per kilogram, contrasting with gold’s upward momentum.
Why are gold prices rising?
Several factors are contributing to the sharp increase in gold prices
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Budget 2025’s focus on Economic independence: Government policies promoting self-reliance have spurred investors' interest in safe-haven assets like gold.
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Stock Market Volatility: concerns over global trade policies and potential tariff changes have pushed investors towards gold as a hedge against market fluctuations.
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Technical indicators: analysts note that MCX gold is showing strong bullish momentum, with traders buying at lower levels, pushing prices higher.
Gold prices remain near record highs as investors worry about inflation risks stemming from President Trump’s tariffs on Canada, China, and Mexico. While tariffs on Mexico and Canada have been suspended for 30 days, those on Chinese goods remain in place, with China expected to respond after the Lunar New Year holiday.
On Tuesday, the spot edged up 0.1% to $2,816.64 per ounce, following a record high of $2,830.49 in the previous session. U.S. gold futures, however, dipped 0.3% to $2,849.60. The market views tariffs as inflationary, boosting demand for gold as a safe-haven asset.
Meanwhile, global bullion banks are flying gold into the U.S. to take advantage of the high premium on the U.S. gold futures. Investors are also closely watching the upcoming U.S. economic data, including the ADP employment report and JOLTS jobs openings, for further insight into economic conditions. Additionally, SPDR Gold Trust holdings rose 0.10% to 865.63 tonnes, reflecting continued investors interest in gold.
What’s next for the gold prices?
Experts predict further price movements based on market trends
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If gold crosses ₹83,500 on MCX, it could climb towards ₹84,000.
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Support levels are around ₹81,800, meaning a drop below this could lead to further declines.
Outlook for silver and other precious metals
Unlike gold, silver price saw a slight dip, trading at $31.61 per ounce internationally. However, platinum and palladium showed gains, rising by 0.7% and 1%, respectively.
Market analysts suggest that gold prices may remain volatile in the coming days, with a range bound to the upward trend expected in Indian markets. As economic and geopolitical uncertainties persist, gold remains a preferred investment for many.
For those looking to buy or invest, keeping an eye on price movements and global economic trends will be crucial.